

















































































































































































































































































































































'<C* 


/S 


Traffic 
Management 


THE STANDARD COURSE 

OF THE 

UNITED Y.M.C.A. SCHOOLS 



BOOK I 

Fundamentals of Transportation 
book II 

Tariff Interpretation and Rate 
Construction 

book III 

Express and Parcel Post : 
Claims and Transportation Law 

book IV 

Ocean Transportation 

COLLATERAL REFERENCE BOOKS 
READING ASSIGNMENTS 


MAPS 



Traffic Management 


Authors of Reading Assignments 

The Field of the Traffic Manager, 

Burt Zimmerman 

Cooperation Between the Sales and the 


Traffic Departments. T. T. Harkrader 

Tariffs and Rates. William Simmons 

The Story of Transportation. F. T. Bentley 

Express Service. J. H. Butler 

Claims. C. L. Hilleary 

Romance in Overseas Trading. .. .B. Olney Hough 
Vital Phases of Export Traffic....#. J. Menzies 







Fundamentals 

of 

Transportation 


BY 

CHARLES F. WALDEN 

w 


BOOK I 

Revised Edition 


ASSOCIATION PRESS 

New York: 347 Madison Avenue 
1924 



Copyright, 1924, by 
The International Committee of 
Young Men's Christian Associations 
(Printed in the United States of America ) 
All rights reserved 




©Cl A 808075 


r\ A ( 



PREFACE 


The Great War brought to the attention of 
the average man many things which had touched 
his life every day, but without making any distinct 
impression of vital relationship to his comfort or 
happiness. Prior to the winter of 1917-1918, for 
example, the householder in the eastern and mid¬ 
dle states had given his orders for coal to his coal 
dealer and had been supplied promptly. It was, 
therefore, a distinct shock to him when, in that 
winter, he found that neither love nor money 
could fill an empty coal bin and that, as frequently 
happened, coal had to be doled out in quarter-ton 
lots; and even then there was not enough for all. 

What was the trouble? There was coal at the 
mines and there was money aplenty to buy it; but 
the means of getting it from mine to home had 
broken down—the railroads could not transport 
the coal. The roads, as we know, had been taken 
over by the Government and every means at their 
command had been diverted, for the time, to rush¬ 
ing materials for the war. 

The average man then learned that transporta¬ 
tion was something vital in his life; something on 
which not only his own life depended, but the lives 
of the millions of men—our own and the Allies— 
who looked to America for supplies. 

Transportation is indeed the backbone of our 
social and commercial body. If it suffers a break 
or dislocation, the entire body suffers paralysis. 

The transportation of commodities is now an 


vi Fundamentals of Transportation 

engineering science, which has called into being 
the expert traffic manager. His job, like all other 
jobs demanding specialized knowledge and train¬ 
ing, began in an humble way and grew in im¬ 
portance and necessity along with the expansion 
of the railroads themselves and with the develop¬ 
ment of the laws, rules, classifications, and rates 
which now mark traffic as perhaps the most intri¬ 
cate division of the field of commerce. 

The transportation agencies developed their 
own traffic men. It was simply a matter of keep¬ 
ing abreast of the ever widening problems of 
transportation. At first, traffic was a compara¬ 
tively simple matter; the railroads were all short 
lines and extended part way through a single state, 
or through parts of two states. But the day of 
consolidations and extensions came. Short lines 
were merged together into our present-day, semi¬ 
continental systems. 

Cooperation began in the making of rates, 
classifications, and rules. Eventually, Congress 
was obliged to gather up the threads of intrastate 
transportation practice and weave them into 
blanket laws that would cover traffic in all inter¬ 
state movement of freight. 

Necessarily, as transportation practice became 
more intricate, the problems of the traffic man 
grew more complex, until it has now become prac¬ 
tically impossible for a young man to gain ex¬ 
perience sufficient to qualify him for a traffic man¬ 
ager’s job unless he can be given opportunities 
to serve in every capacity in a highly organized 


Preface 


vii 

traffic department. And that is the reason for the 
course of training in Traffic Management, em¬ 
bodied in these textbooks and their accompanying 
Reference Books and Reading Assignments. 

Late in 1920, the Traffic Management Commis¬ 
sion of the United Y. M. C. A. Schools began its 
plans for building the course. Two goals were 
set up for attainment; namely, first, that the course 
should be an exposition of sound traffic practice; 
second, that only such information should be given 
in the texts and Reference Books as would be 
absolutely needed by the student, to meet and 
solve everyday traffic problems. 

The Traffic Management Commission, consist¬ 
ing of A. H. Speer, Educational Secretary, Minne¬ 
apolis, F. C. Fields, Educational Director, In¬ 
dianapolis, and C. V. Thomas, Educational Sec¬ 
retary, Cleveland, after mapping out the plan of 
the course and the contents of the texts, called to 
their aid as an Advisory Commission five experi¬ 
enced traffic men. These men were T. E. Hawk, 
Traffic Manager, Deere, Webber Company; Lee 
Kuempel, Assistant Manager, Minneapolis Traffic 
Association; W. H. Perry, Traffic Manager, Pills- 
bury Flour Mills Company; H. D. Tumbleson, 
Manager, Lee Tire Company; and Burt Zimmer¬ 
man, Instructor of Traffic Management, Cleve¬ 
land School of Technology. 

The author of the texts, Charles F. Walden, 
Freight Traffic Specialist, accumulated his broad, 
practical knowledge of transportation in thirty 
years of personal experience; twenty of those 


viii Fundamentals of Transportation 

years having been spent in the traffic department 
of the Pennsylvania Railroad. 

The author desires to acknowledge most valu¬ 
able assistance and suggestions, in preparing his 
manuscript, from Messrs. T. T. Harkrader, Man¬ 
ager of the St. Louis Branch of the American 
Tobacco Company, C. L. Hilleary, Traffic Man¬ 
ager, F. W. Woolworth & Company, and William 
Simmons, General Freight Agent, Southern Pa¬ 
cific Company. 

The author desires also to acknowledge the 
valuable assistance, in preparing the Chapter on 
Drayage, rendered by Mr. Arthur G. McKeever, 
President, Ajax Trucking Company, Inc. 

Acknowledgement is also made to the teachers 
of traffic courses in the Y. M. C. A. schools for 
valuable suggestions that have been utilized in 
preparing this revised edition. 

The Reading Assignments were written by men 
who have attained eminence in their respective 
fields of traffic and transportation. They are 
F. T. Bentley, J. H. Butler, T. T. Harkrader, 
C. L. Hilleary, B. Olney Hough, R. J. Menzies, 
Wm. Simmons, and Burt Zimmerman. Who these 
authors are is conveyed in brief biographies in 
“The Key to the Course.” 

This course in Traffic Management is the prod¬ 
uct of careful planning and thought given to it by 
a score of most capable men, whose purpose has 
been to serve the young men who desire to equip 
themselves for entering the “new profession.” 


CONTENTS 


CHAPTER PAGE 

Preface . v 

1 The Industrial Traffic Department. 1 

2 Development of Transportation and Its Regula¬ 

tion . 21 

3 Modern Transportation Agencies. 39 

4 Shipping Papers . 49 

5 Freight Classifications . 59 

6 Interpretation of Classification, Rules 1 to 13.... 71 

7 Interpretation of Classification, Rules 14 to 41.... 87 

8 Freight Cars: Weights and Weighing. 97 

9 Movement of Freight—Outbound. 107 

10 Movement of Freight—Inbound. 123 

11 Shipping and Receiving Departments. 135 

12 Drayage . 149 

13 Routing . 165 

14 Demurrage and Storage. 181 

15 Lighterage and Switching. 195 

16 Diversion and Reconsignment. 205 


IX 




























Chapter 1 

THE INDUSTRIAL TRAFFIC 
DEPARTMENT 

Section I 

Development of the Traffic Department 

Why a Traffic Department .—Our country dif¬ 
fers widely in topography, climate and density of 
population. The products of the different sec¬ 
tions, either in their raw or manufactured state, 
must be transported to the commercial centers for 
distribution and consumption. 

In order to transport these products our land 
is traversed with roads of steel over which con¬ 
tinually pass long train loads of merchandise. A 
great fleet of steamships, carrying immense car¬ 
goes, plies between our seaports in coastwise and 
intercoastal trade. Another large fleet operates 
on the Great Lakes. 

Through these great arteries of commerce flow 
the products of field, forest, factory, and mine, 
thus creating constantly innumerable traffic prob¬ 
lems, both intricate and complex: For instance, 
the cotton grower in Texas must place his cotton 
in the New England mills in competition with the 
cotton growers of the Carolinas and Georgia. 
The oranges from the groves of California must 
be placed in the Eastern markets in competition 
with the oranges from the groves of Florida. The 
1 


2 Fundamentals of Transportation 

manufacturers of New England must place their 
goods in the West in competition with the manu¬ 
facturers of the Middle States, and so on. 

The transportation companies are continually 
making rate adjustments to meet these sectional 
problems. They have created freight rate bu¬ 
reaus for the purpose of making exhaustive 
research in order to determine all the elements 
affecting rates on the almost countless variety of 
commodities and thus endeavor to issue tariffs con¬ 
taining reasonable and equitable rates. The task 
of satisfying shippers is extremely difficult and 
almost impossible. 

Different Kinds of Traffic Management .—It 
will be observed that there are three different 
kinds of Traffic Management; viz., railroad, 
steamship, and industrial. Two other agencies of 
transportation that require skillful management 
might be mentioned, namely, express and motor 
truck companies. 

Traffic Managers of the railroad and steamship 
companies are usually men who enter the employ 
of the companies in their youth, who have traveled 
the hard road of experience and have achieved 
this position of distinction by the development of 
exceptional ability in this particular branch of the 
business. 

Industrial Traffic Management presents en¬ 
tirely different problems from those that confront 
the railroad and steamship traffic manager. 
There is no vocation more fascinating or present¬ 
ing more varied problems than that of industrial 


The Industrial Traffic Department 3 

traffic management. The vocation never becomes 
monotonous because new and intricate problems 
are constantly arising. 

Varied Problems .—An industrial Traffic De¬ 
partment is usually developed from a small begin¬ 
ning, and has solved its problems in its own way. 
It is built to fit the business and is sufficient to the 
task. There are no two Traffic Departments or¬ 
ganized exactly alike, possibly for the reason that 
industrial traffic enterprise leads into realms that 
have not been fully developed and because our in¬ 
dustries are varied, and have to do with the trans¬ 
portation of so many different commodities. 

The size of a Traffic Department and the com¬ 
pleteness of its organization depend principally 
upon the character and volume of the business, the 
variety of the commodities handled, the quantities 
in which they are shipped, and the extent of the 
territory in which they are distributed. If a busi¬ 
ness is extensive and diversified, a systematized 
Traffic Department is necessary. If, however, the 
business is large in volume, but with little detail, 
a small organization suffices. Some industries 
have given the Traffic Department jurisdiction 
over the physical handling of the product, thus 
adding to the opportunities as well as to the bur¬ 
dens of the department. 

Introduction of the Traffic Man .—It was only 
a few decades ago that the industrial traffic man 
was first introduced. Men who had received their 
early training in the employ of the railroad and 


4 Fundamentals of Transportation 

had achieved a place of distinction were engaged 
by large industries to protect them in their deal¬ 
ings with the railroad. Prior to that period very 
little attention was given to proper packing and 
routing of freight, the shipper not being interested 
because the freight charges were usually paid by 
the customers. In the modern method of busi¬ 
ness, however, the shipper is intensely interested 
and mercantile establishments find a Traffic De¬ 
partment which cooperates closely with the pur¬ 
chasing and selling departments an excellent in¬ 
vestment. 

From time to time more laws to regulate com¬ 
merce (the principle of which was to prevent dis¬ 
crimination) were put upon the statute books. 
The railroads were required to publish a multi¬ 
tude of rules and tariffs. The situation grew into 
a labyrinth of technicalities and became so com¬ 
plex that, as a result, the ordinary shipper was 
required to hire a traffic expert to handle his traffic 
affairs. 

Many shippers still seem to be in ignorance of 
the value of a competent traffic manager, and 
some believe that a traffic department is merely 
an additional expense, when, on the contrary, it 
has been proved to be a large factor in the earning 
capacity of many mercantile concerns. A large 
traffic department in New York City has its ac¬ 
count kept separately. It is debited with all the 
expense it incurs by its maintenance; i.e., salaries, 
losses in transportation, etc., and credited with its 
actual earnings; i.e., claims collected, rate and 


5 


The Industrial Traffic Department 

classification adjustments obtained, etc. This 
department shows a profit each year of many 
thousands of dollars. 

The great demand for men of technical training 
and versed in 'traffic matters has made schools 
necessary to round out the education of men for 
traffic work. The “Traffic World,” the foremost 
publication of its kind, recently stated editorially 
the following: 

This is undoubtedly the day of the industrial Traffic 
Manager. It would seem that never, in the comparatively 
few years since the necessity for the Traffic Manager has 
been generally recognized in commercial business, has there 
been a time when it could not be truthfully said that never 
before was there greater opportunity for him and that 
never before was he able to be of such value to his em¬ 
ployer. But it is more true now than ever. The day is 
coming when the traffic man will be as important and as 
powerful as the attorney to whom the head of the business 
turns for advice and whose advice he does not question. 
The lawyer knows the law and that ends it. He is hired 
to know the law. The traffic man knows the traffic game 
and what transportation measures are best for his own 
business and all business. 

The Opportunity in Traffic Management .—A 
survey has not been made of the number of highly 
trained men engaged in handling the traffic affairs 
of shippers, but there are traffic clubs and organi¬ 
zations in all parts of the country, indicating a 
large field of activity. The total membership of 
these clubs runs into the thousands. The Traffic 
Club of New York City has a resident membership 
of some 1,500, and more than 800 of these repre¬ 
sent Traffic Departments of industrial concerns. 
Yet, there are many business men who know little 
of the economies that are possible through an ade- 


6 Fundamentals of Transportation 

quate knowledge of technical traffic matters. There 
are thousands of concerns without Traffic Man¬ 
agers that could use them to advantage. No 
chamber of commerce, board of trade, or similar 
organization would be complete without a Traffic 
Department. All over the country, at the present 
time, merchants’ associations of cities and town 
are installing Traffic Departments. The success 
of this branch of the organization depends on the 
selection of a competent traffic man who has had 
the proper training. The field is wide and pos¬ 
sesses many opportunities for young men who 
want to succeed, and are willing to pay the price of 
success. 


Section II 

Organization of a Traffic Department 

Each Branch Specialized .—As the Traffic De¬ 
partment is developed, each branch of the work 
is specialized. Every one has a particular assign¬ 
ment, as is customary in any well regulated or¬ 
ganization. Possibly a more graphic idea will be 
conveyed by a general outline of a Traffic Depart¬ 
ment in actual operation. The personnel of such 
a department in a large manufacturing concern, 
which has been in operation a number of years and 
which has been highly developed, is given on the 
following pages. 

It is not possible to give an organization chart 
of a Traffic Department that could be followed 
generally, but the outline given will show the ex- 


7 


The Industrial Traffic Department 

tent to which a Traffic Department may be devel¬ 
oped to handle a large and diversified traffic. At 
the beginning, this department consisted of a 
Traffic Manager, a clerk, and a stenographer. 
Today it consists of forty-three people in the main 
office, and large units under its supervision at the 
' manufacturing plants. The various positions in 
the department are given, together with the gen¬ 
eral subjects handled by each. 

Personnel of a TV ell Organized Traffic Depart¬ 
ment .— 

Traffic Manager (and his Secretary). 

Senior Assistant Traffic Manager, in 
charge of: 

General railroad matters, 

Supervision of the main office, 

Rate adjustments, 

I. C. C. and Classification matters, 
Supplying the Purchasing and Selling De¬ 
partments and the plants with rate in¬ 
formation, 

Complaints of service, 

Solicitation Correspondence, 

Switching, 

Car Supply, 

Demurrage, 

Weight Agreements, 

Statistics, 

Attending rate meetings, 

Meeting the public. 


8 Fundamentals of Transportation 

Chief Clerk: Rate and Routing Department, 
Distributing mail, 

Routing matters, 

Passing reports and records, 

Tracing important cars, 

Embargoes, 

Outstanding freight bills. 

Chief Rate Clerk: 

In charge of tariff file, 

Overcharge claim correspondence, 

Rate quotations, 

Rate compilations, 

Refunds, not in claim. 

Two Rate Clerks : 

Checking overcharge claims, 

Freight allowances, 

Checking freight bills. 

Two Routing Clerks: 

Compilation of routing sheets, 

Routing supplies. 

Chief Claim Clerk: Claim and Trace De¬ 
partment, 

Claim and trace correspondence, 
Reconsignments. 


The Industrial Traffic Department 9 
Claim Clerk: 

Claim and trace correspondence. 

Correspondent : 

Initiating tracers, 

Unclaimed freight, 

Concealed losses, 

Requests for bills of lading, invoices, as¬ 
signments, etc. 

Assistant Chief Claim Clerk: 

In charge of claim records, 
Correspondence relative to remittances 
and accounts, 

Tracing claims. 

Claim Clerk: 

Preparation of loss and damage claims, 
Remittances, 

Cancellation record. 

Claim Clerk: 

Claim register and ledger work. 

Six File and Mail Clerks: 

Filing of correspondence, tariffs, etc., 
Handling inbound and outbound mail, 
Mimeograph work, etc. 


Thirteen Stenographers and Typists 


10 


Fundamentals of Transportation 


Assistant Traffic Manager, in charge of: 
Shipping departments and their personnel 
at plants. 

Preparation of shipments: 

Packing, 

Checking, 

Weighing, 

Marking, 

Loading. 

Expediting shipments, 

Complaints involving shipping depart¬ 
ments, 

Visiting plants. 

Assistant : 

Cost figures on shipping expense, 

Factory stocks and inventories, 

Orders. 

Three Clerks: 

Records of daily shipments, 

Orders for stock, 

Reports. 


Assistant Traffic Manager in charge of: 
Trucking at all plants, 

Trucking contracts, 

Outside warehousing arrangements, 
Approval of purchase of truck equipment. 



The Industrial Traffic Department 11 

Assistant : 

Trucking statistics, 

Checking cartage bills, 

Insurance of goods on trucks. 

Checking trucking reports. 

Two Clerks: 

Arranging for hauling, 

Placing of trucking orders, 

Record of trucking. 

The Traffic Department has charge of the prod¬ 
uct from the time it is delivered to the shipping 
floor by the manufacturing department, until it is 
finally delivered to the consignee. It ships on 
orders obtained by the selling department and 
accounts for the shipment to the accounting de¬ 
partment, which bills the goods and collects the 
money. The Traffic Department is also responsi¬ 
ble for the expense of shipping. 

The man who was the clerk in this Traffic De¬ 
partment when it was established subsequently be¬ 
came the Traffic Manager and a director of this 
large organization and he is now the President of 
a large Western branch of this corporation. 

Section III 

The Traffic Manager 

Definition of Traffic Manager .— 

(a) The Traffic Manager is the person in 
charge of the shipping for his employer, which 


12 Fundamentals of Transportation 

may be a manufacturing company, wholesale dis¬ 
tributor, exporter, mining concern, or anybody 
that ships or handles merchandise or material in 
sufficient volume to warrant employing a person 
to give his attention to that part of the business. 

(b) The Traffic Manager is the shipping ex¬ 
pert, who has a technical knowledge of railroads 
and routes, tariffs, rates and classification, trans¬ 
portation law, claims, and a practical understand¬ 
ing of the elements that enter into transportation. 

(c) The Traffic Manager has full control of, 
and directs the policy in all shipping matters. 

(d) The Traffic Manager is the transportation 
representative of the shipper in all dealings with 
the carriers. 

(e) The competent Traffic Manager selects 
places where plants are located, branch houses 
established, divides the territory for the purchas¬ 
ing department and furnishes necessary informa¬ 
tion to the salesmen. The population of our 
country is still increasing and expanding, conse¬ 
quently production centers and sales routes are 
continually changing. In the location of addi¬ 
tional manufacturing or distributing plants the 
territory to be served and the sources of raw 
material must be given most careful considera¬ 
tion. This makes it necessary for the Traffic 
Manager to solve these problems in order to con¬ 
serve waste transportation. 

A good shipping clerk and a good claim clerk 
are not necessarily traffic men, although some 


TRAFFIC MANAGER 


The Industrial Traffic Department 13 



PERSONNEL OF AN AVERAGE TRAFFIC DEPARTMENT 











14 Fundamentals of Transportation 

firms are satisfied to regard them as such. How¬ 
ever, these men by education and training may 
achieve larger things. 

Qualifications for a Traffic Manager. 

(a) The Traffic Manager should know the 
country in general. He should have a clear con¬ 
ception of the geography of the United States. 
He should be so familiar with the railroad map 
of the country that he can trace the main lines of 
the important roads and know the most direct 
routes. 

(b) He should know the individual merits of 
the various railroad systems and their workings 
with each other, their connections and junctions, 
and should know the location of the larger rail¬ 
road centers. 

(c) He should have a practical understanding 
of the elements that enter into transportation. 

(d) To know the routes he must have a broad 
knowledge of rates, their construction and appli¬ 
cation, the classification affecting the commodities 
he handles or ships, the general rules, switching 
and demurrage. 

(e) The Traffic Manager should be familiar 
with the important parts of the Interstate Com¬ 
merce Act, including the decisions of the Inter¬ 
state Commerce Commission and the courts, to 
guide him in the correct conduct of his business. 
He should also be familiar with such instruments 
as the bill of lading contract, bond of indemnity, 


The Industrial Traffic Department 15 

assignments, and the freight claim rules. He 
should know the Rules of Practice before the In¬ 
terstate Commerce Commission and be capable 
of appearing before it to present his petition in 
the proper manner. 

(f) In this age of the typewriter, the bulk of 
routine matters is handled by correspondence; 
the Traffic Manager should know the proper 
channels through which to handle his business. 

(g) The Traffic Manager for the larger com¬ 
panies should be a man who has traveled suffi¬ 
ciently to know the location of the lines he uses, 
as well as the railroad officials with whom he does 
business. He should have the personal experi¬ 
ence derived from travel. It may not be possible 
for him to visit distant terminals and junctions, 
but he can travel to the terminals in the city in 
which he is located. Intimate acquaintance with 
the officials and employees of the railroad and 
steamship companies that handle his traffic is not 
only advisable, but necessary in order to obtain 
satisfactory results. The Traffic Manager cannot 
transact all his business in an office. 

(h) The Traffic Manager should possess the 
qualification of good common sense. He should 
have the sense of proportion and be practical in 
small things. He should have a will to please and 
a desire to render service. 

(i) The Traffic Manager should possess a 
high degree of diplomatic ability. He should be 
on friendly terms with all. He should deal fairly 


16 Fundamentals of Transportation 

and strive to please. He should observe the 
Golden Rule. Too long have the shippers and 
carriers been antagonistic. This is the day of 
cooperation; whenever a common desire prevails 
to reach a point of agreement in the adjustment 
of a grievance, differences are soon ended. 

The two most important requisites of a Traffic 
Manager are “Breadth of Understanding” and 
“Honesty of Purpose.” Any traffic manager, 
who, for the sake of collecting a few dollars from 
a Transportation Company, will stand on the 
strictest technicalities, without considering the 
principles involved, is a failure, regardless of his 
traffic knowledge, and he will quickly place his 
concern before the carriers in a most unfavorable 
light. By knowing the limitations of the carriers 
and the problems to be worked out, the two inter¬ 
ests can be reconciled. 

Duties of a Traffic Manager .—The responsi¬ 
bilities of the Traffic Manager should be as fol¬ 
lows : 

First: To protect his company from loss (a) 
by complying with rate and classification require¬ 
ments so as to obtain the proper rates; (b) by 
paying only the tariff rates; (c) by eliminating 
waste transportation in distribution—that is, 
loading the quantity of freight, the weight of 
which will equal the minimum weight upon which 
charges are assessed; (d) by reducing the number 
of mistakes; (e) by guarding against delays that 
may result in closing down of plants, or great loss 


The Industrial Traffic Department 17 

to his employer due to penalty contracts or fall 
in market prices; (f) by obtaining adjustments of 
unreasonable or unjust classification ratings and 
rates; (g) by collecting just claims. 

Second: To bring about economies by reducing 
the cost of shipping, loading, trucking, etc. 

Third: To obtain better service (a) by secure 
packing, and (b) by intelligent shipping, loading, 
and routing. 

Fourth: To establish cordial relations with 
carriers in the spirit of cooperation and by a 
reputation for fair dealing. 

Section IV 

Subsidiary Traffic Jobs 

Rate Clerk .—What has been said as to the 
duties and qualifications of the Traffic Manager 
applies to the men coming up the line; for as time 
goes on they must take the higher positions. Busi¬ 
ness is demanding men who are efficient, loyal, and 
upright. 

There is no work of greater importance in the 
Traffic Department than that of RATES. The 
KNOWLEDGE of rates is the principal pillar 
supporting the structure. The Traffic Depart¬ 
ment is responsible for the correctness of the 
rates paid. It must supply correct information 
as to rates to the purchasing department, to guide 
it in purchases. It must advise the selling de¬ 
partment in the matter of rates. The rate clerk 


18 Fundamentals of Transportation 

should become so familiar with the rates on his 
commodity that even the railroad agents will re¬ 
gard him as an authority. He should be so exact 
that, when he quotes a rate, he can name his 
authority for it and stand back of it without fear 
of contradiction. 

Claim Clerk .—The man who handles claims 
has a job which, considered by itself, may be a 
profession. A good claim clerk, as well as a 
traffic manager, should have breadth of under¬ 
standing and honesty of purpose, because he occu¬ 
pies a quasi-judicial position. He should always 
try conscientiously to decide fairly and impartially 
all problems which arise; otherwise his work will 
be a failure. 

The actual knowledge necessary for a proper 
handling of the details of claim work may be 
listed under the following general headings: 

First, a thorough knowledge of railroad trans¬ 
portation; second, a full understanding of the 
general principles of carrier’s liability; third, a 
knowledge of rates and classification. 

The first heading refers to a knowledge of the 
details of transportation; i.e., to understand 
thoroughly how freight is handled by carriers 
from the time it is received from the consignor 
until delivered to the consignee. In connection 
with both perishable and dead freight he should 
be thoroughly conversant with the details of 
proper loading, bracing, and sealing of cars, also 
with the handling of diversions, and in connection 


The Industrial Traffic Department 19 

with perishables, with refrigeration, ventilation, 
heater service, and schedules. 

The second heading covers a general under¬ 
standing of carrier’s common law liability, pro¬ 
visions of the bill of lading, knowledge of the 
leading decisions, and a good common sense un¬ 
derstanding of the service carriers are obligated 
to furnish. He should know something of the 
workings of the freight claim office of a railroad. 
He should know how to establish the facts in his 
claims. 

The third heading covers a general knowledge 
of tariff interpretation, rate construction, and clas¬ 
sifications, particularly those relating to crating, 
loading, bracing, and the terminal tariff covering 
handling of cars at destination and diversions. 

Other Important Lines. — While rates and 
claims are the leading features of the Traffic De¬ 
partment, there are many side lines, which will 
be considered later. 

Opportunity for Promotion. — It has been 
stated that the Traffic Department is a matter of 
growth; so with the Traffic Manager. The 
younger man starts either in a minor position of a 
large Traffic Department, or as the Traffic Man¬ 
ager of a small concern. Then by study and ap¬ 
plication, as he develops ability and knowledge, 
the larger fields are open to him. 



Chapter 2 

DEVELOPMENT OF TRANSPORTATION 
AND ITS REGULATION 

COLLATERAL READING: In the Freight Traffic 
Red Book - The Elkins Act; Governmental Regulation. 

Section I 

Transportation Agencies 

The Means of Transportation .—The history 
of transportation in America may be divided into 
three stages; namely, first, the period of turnpike 
construction when roads were improved so that 
horse or mule drawn vehicles could travel with 
greater ease and carry larger quantities of freight. 
At the place where the tolls were collected, there 
was a gate which closed and opened the road to 
traffic. This gate consisted of a stout pole armed 
with pikes—hence the name, turnpike. The sec¬ 
ond period of development in transportation was 
the building of canals. These, of course, were 
possible where two rivers or other bodies of water 
could be connected satisfactorily. Rivers them¬ 
selves have been used as arteries for transporta¬ 
tion during all history, since the invention of the 
first “dugout.” The third period of transporta¬ 
tion development is that of railroad construction. 
We are still living in that period, but it is now 
merging into a fourth—the era of motor trucks, 
aeroplanes, hydroplanes, and dirigibles. 

21 


22 Fundamentals of Transportation 

Turnpike Construction .—In the early history 
of the country the sailing vessel was practically 
the only agency of transportation; but owing to 
the rapid growth in population other means of 
transportation became necessary and roads called 
turnpikes were built. 

The period of the turnpike extended from the 
Revolution to 1830. During the close of the 
18th century and early in the 19th, the construc¬ 
tion of toll roads and turnpikes was begun by the 
New England and Middle States, to meet the 
demands of the growing population for high¬ 
ways. In 1790 a company was chartered to build 
a turnpike from Philadelphia to Lancaster, which 
marked the beginning of a series of pikes extend¬ 
ing from Trenton, N. J., to Steubenville, Ohio. 

Other turnpike roads were built with funds do¬ 
nated by the States and by the Federal Govern¬ 
ment. The most celebrated of these was known 
as the Cumberland Road or “National Pike,” 
constructed by the United States. It was begun 
in 1811 at Cumberland, Md., and was slowly ex¬ 
tended to Wheeling, W. Va., across Ohio and In¬ 
diana to Vandalia, Illinois. Further development 
in turnpike construction was retarded by the build¬ 
ing of canals and railroads. 

Digging Canals .—As early as 1762 surveys for 
canal routes were made in Pennsylvania, but the 
greater period of canal building was after the 
War of 1812. The first man who saw the future 
of canal communication was George Washington, 


Development and Regulation 23 

whose main efforts, however, were directed to¬ 
ward connecting Chesapeake Bay and the Ohio 
River. The period of great activity in canal con¬ 
struction dated from 1817 to 1850. Undoubtedly 
the primary reasons for this activity were to con¬ 
nect the Pennsylvania coal fields with the Atlantic 
Coast, and to connect the eastern settlements with 
the rapidly growing towns of the West. 

The project of establishing a through canal 
route to the West was tried by New York, Penn¬ 
sylvania, and Maryland, but only New York in 
its Erie Canal project was successful. This canal 
was begun in 1817 and completed in 1825. For 
half a century it w r as the most important water 
route between the Atlantic seaboard and the Cen¬ 
tral states. 

The Erie Canal connects the Hudson River at 
Albany and Troy with Lake Erie at Buffalo. Its 
construction was principally due to the energy of 
De Witt Clinton, who was governor of New York 
during nearly all of its progress. As its route lay 
chiefly through an uninhabited wilderness, it 
opened for settlement an enormous territory. The 
canal has been immensely successful, contributing 
largely to the growth of New York and Buffalo. 
At the present time it is an important artery of 
traffic, and is the natural route by which grain 
should move from the West. 

In the West, canal building never attained the 
prominence it did in such states as New York and 
Pennsylvania. Between 1830 and 1850, Ohio and 
Indiana built several canals connecting the Ohio 


24 Fundamentals of Transportation 

River with Lake Erie, and Illinois built a canal 
from Chicago to La Salle on the Illinois River. 

The decline in canal building began in 1840 and 
was due, first, to the panic of 1837, which crippled 
the states financially; second, to the extension of 
railroads; third, to the cost of construction, which 
was greater than for railroads; and fourth, to 
their slow method of transportation. 

The Era of Railroads .—There was little rail¬ 
road building in thp United States before 1830, 
at which time the Baltimore and Ohio Railroad, 
chartered three years previously, had 13 miles of 
track. Between 1830 and 1840 nearly 2,800 
miles of track were built, most of it radiating from 
Philadelphia and New York. Up to 1850 rail¬ 
road building was slow, but steady, with greatest 
activity in thickly settled New England. 

The decade from 1850 to 1860 covered a 
period of railroad expansion, due to great busi¬ 
ness prosperity. Settlers developed large farm 
areas in the West and produced abundant crops, 
and cotton-growing in the South was greatly in¬ 
creased. The superiority of the railroad over the 
canal to transport these products and its cheaper 
cost of construction were demonstrated. Men 
were, therefore, induced to invest in railroad se¬ 
curities, especially since the discovery of gold in 
California had brought business activity and keen 
desire to speculate. Railroad construction was 
further stimulated by land grants from states and 
from the Federal government. Many short lines 
were joined together during this period. 


Development and Regulation 25 

Railroad development following the Civil War 
was. very extensive until 1890. Construction was 
rapid during the period of 1866 to 1873, and in 
1869 the first trans-continental line was com¬ 
pleted. Further land grants by the Federal gov¬ 
ernment aided development. The panic of 1873 
temporarily checked railroad growth, so that 
there was little construction until 1880. The 
greatest period of railroad growth was the decade 
of 1880 to 1890, for during those years over 
70,000 miles of track were built. This great 
activity was caused by a craze to speculate, due 
to the plentifulness of money. Since 1890 the 
construction of railroads has been very small, 
averaging less than 2,000 miles a year. The 
present railway systems total over 260,000 miles. 

Motor Truck and Aircraft .—The motor truck 
is now largely used for short haul traffic in com¬ 
petition with the railroads. The employment 
of motor trucks in transportation service has 
again made the old turnpikes serviceable. They 
have been placed in modern shape and many addi¬ 
tional highways have been built. 

The service which the motor truck renders is 
desirable, because there is less packing required, 
there is no rehandling of freight and quicker 
deliveries can be made, with store door delivery 
the rule. The motor truck is also a feeder to the 
railroad, for by its use industries are able to locate 
at long distances from railroad stations and at 
interior points where land or rent is much cheaper. 


26 Fundamentals of Transportation 

Under the old method of cartage this location of 
industries would be impossible. Motor trucks are 
also of assistance to farmers in bringing their 
produce to the railroad station. 

Some railroads have put motor truck units into 
operation, thus displacing local less-than-carload 
freight trains. 

The aeroplane is used for carrying mail and 
some passenger service, but the use of it is still 
in an experimental stage. 

Section II 

Regulating Transportation 

Attempts at Regulation. — There was little 
regulation of transportation agencies before 1887. 
Up to the year 1870 it was generally assumed that 
the price of railway services, like that of ordi¬ 
nary commodities, would be governed by competi¬ 
tion. Every section of the country was eager to 
have railroad construction expedited, and far 
from burdening the railways with restrictions by 
regulation, on the contrary, many States gave lib¬ 
eral aid to the railroad companies, through the 
guaranteeing of bonds, direct money grants, free 
rights of way, etc. The Federal Government also 
made enormous grants of land to them. 

When the railways became well established the 
popular belief in the efficiency of competition as a 
regulator of rates began to wane. Evidence of 
discrimination, as between individuals and locali¬ 
ties, attracted popular attention, and a movement 


Development and Regulation 27 

in favor of regulation of rates by the State was 
started by the Grangers, then a powerful organ¬ 
ization in several of the Western States. Many 
States immediately passed laws authorizing the 
appointment of Railway Commissions having 
power to fix rates. Down to 1886 it was the 
popular belief that a State had a right to regu¬ 
late rates on all passenger and freight business 
within its boundaries. In that year, however, the 
United States Supreme Court decided that the 
regulation by a State of rates on traffic originat¬ 
ing outside of the State, or destined to points 
outside of the State, is interference with inter¬ 
state commerce (Wabash R. R. Co. v. Illinois, 
118 U. S. Rep. 557). 

As most of the traffic in the United States is in¬ 
terstate this decision practically deprived State 
regulation of its force. The public, however, de¬ 
manded regulation of railways and Federal regu¬ 
lation became a necessity. 

The Interstate Commerce Act .—In 1887, Con¬ 
gress passed the Interstate Commerce Act. This 
Act applies to interstate and foreign freight traffic 
when moving wholly by rail or partly by rail and 
partly by water, when both are used under a com¬ 
mon control or arrangement for a continuous ship¬ 
ment. The Act created a commission to investi¬ 
gate and adjust transportation charges, and to 
correct abuses; but the commission was seriously 
hampered by the courts. It was almost impossible 
for a shipper to obtain any satisfaction. Out of 


28 Fundamentals of Transportation 

over thirty decisions rendered by the Interstate 
Commerce Commission only two were affirmed by 
the court; and it took about six years for each 
case to be legally decided. The orders of the com¬ 
mission were not binding and it was becoming the 
opinion that the Interstate Commerce Commission 
was useless, as its decisions were so persistently 
reversed by the courts. The effectiveness of the 
law lay in securing publicity of rates, reducing 
the freight charges, and adjusting rail charges in 
different localities. 

The Elkins and Hepburn Acts. — The Elkins 
Act of 1903 endeavored to check the power which 
the “trusts” had gained over the railroads, and it 
did succeed in restricting discrimination to some 
extent, but it failed to secure reasonable rates or 
convey adequate powers to the Commission. As 
the Elkins Act did not contain any power for en¬ 
forcement and possessed no “teeth,” in 1904 and 
1905 President Roosevelt insisted on proper legis¬ 
lation to regulate the railroads, so in 1906 the 
Hepburn Act was passed by Congress. This law 
broadened the field of Federal regulation. It was 
extended to cover both express and sleeping car 
companies. Pipe lines were expressly included. 
“Transportation” was broadly defined as compre¬ 
hending among other things, “all services in con¬ 
nection with the receipt, delivery, elevation and 
transfer in transit, ventilation, refrigeration or 
icing, storage and handling of property trans¬ 
ported.” 


Development and Regulation 29 

The size of the Commission was increased to 
seven members. The railroads were forbidden 
to grant preferential treatment to coal mines in 
which they held an interest, and orders of the 
Commission were to take effect in thirty days. 

The Mann-Elkins Act. — Further power was 
given to the Interstate Commerce Commission by 
the Mann-Elkins Act of 1910, under which the 
Commission could suspend changes in railway 
rates and fix maximum rates, the long and short 
haul provision was reenforced, and authority was 
given to enforce freight classifications. 

Under the old law when an appeal was taken on 
a decision the burden of proof rested upon the 
Commission, but now it is reversed, and in order 
to secure relief from an order of the Commission, 
the carrier must be the petitioner before the 
courts. For each violation of the Commission’s 
order the carrier incurs a penalty of Five Thou¬ 
sand Dollars a day, payable to the United States; 
further, for any infraction of the Act, carriers, 
shippers, and others are subject to a fine of Five 
Thousand Dollars for each offense for which no 
penalty is otherwise provided. 

The Panama Canal Act .—This Act, passed in 
1914, forbids railroads to have interest in any 
competitive common carrier by water operating 
through the Panama Canal or elsewhere. The 
Commission was given power to require connec¬ 
tion of rail and water carriers, to establish 
through routes and maximum rates for rail and 


30 Fundamentals of Transportation 

water lines and to require carriers having traffic 
arrangements with one steamship to include all 
others plying from that port. 

If any such existing specified service by water 
other than through the Panama Canal is being 
operated in the interest of the public and is of 
advantage to the convenience of the people and 
does not prevent nor reduce competition, the In¬ 
terstate Commerce Commission may extend the 
time during which such service by water may con¬ 
tinue. In each case of such extension, however, 
the rates, schedules and practices of such water 
carrier shall be filed with the Interstate Com¬ 
merce Commission. 

Additional Acts .—The Sherman Act of 1890 
and the Clayton Act of 1914 also contain provi¬ 
sions for railroad regulation. 

The Transportation Act,of 1920 .—By this Act 
the membership of the Interstate Commerce Com¬ 
mission was increased to eleven members, but 
the term of office was unchanged. 

A number of sections contain amendments to 
the Interstate Commerce Act which have been 
incorporated in the appropriate sections therein. 
These amendments enlarged the powers of the 
Commission as follows: 

1. It can permit pooling of traffic, when such 
pooling is in the interest of the public. 

2. It may approve consolidation of railroads 
according to a sectional plan. 


Development and Regulation 


31 


3. It can route goods in time of necessity, due 
to congestion or embargoes. 

4. It is given power over car service. 

The following brief explanation is given of 
these powers, as enumerated, in order that they 
may be clearly understood: 

1. Pooling is the act of several carriers oper¬ 
ating in the same territory entering into an agree¬ 
ment to pool their tonnage or earnings and make 
satisfactory adjustment between themselves. The 
object of pooling as it was practiced by the rail¬ 
roads was to prevent the cutting of rates. 

The pools were agreements among railroads 
whereby their competitive traffic or the receipts 
from that traffic were divided among the com¬ 
panies, according to stipulated ratios. Arrange¬ 
ments for the division of the business were called 
Traffic Pools, and those for the distribution of 
the receipts, Money Pools. 

However, there was great opposition on the 
part of the public to such arrangements for elim¬ 
inating competition and thereby maintaining high 
rates and the practice was prohibited by Federal 
Enactments. 

By the Transportation Act the Commission is 
empowered to permit pooling when, in its opin¬ 
ion, it will be in the interest of better service to 
the public, or economy in operation, and will not 
unduly restrain competition. 

2. The Transportation Act authorized the In¬ 
terstate Commerce Commission to prepare and 


32 fundamentals of Transportation 

adopt a plan for the consolidation of the railway 
properties of the United States into a limited 
number of systems but in the division of the rail¬ 
roads into such systems competition must be pre¬ 
served as fully as possible and wherever practi¬ 
cable the existing roads must be maintained. 

While this Act authorizes the Commission to 
approve all railway consolidations yet it is not 
given power to compel the railways to consoli¬ 
date. 

The grouping or consolidation of railroads is 
deemed essential by many for the reason that 
some roads are now run at a great loss, and con¬ 
solidation would be to their advantage because 
it would enable these roads to be absorbed by the 
larger corporations and the stockholders would 
be protected. 

The purpose of the Sectional Plan is to divide 
all the railroads of the country into a limited 
number of systems, thus simplifying transporta¬ 
tion. It would enable the weak roads to con¬ 
solidate with the stronger and thereby place the 
railroad business on a sound basis. 

If the grouping of railroads did not eliminate 
competition, it might possibly enable shippers to 
handle their traffic more satisfactorily, as through 
rates could be more easily established and classifi¬ 
cation would undoubtedly be more uniform. 

Under authorization of the Commission, W. 
Z. Ripley, Professor of Transportation, Harvard 
University, prepared and submitted a plan divid- 


Development and Regulation 33 

ing the railroads of the country into nineteen 
systems, but this plan apparently has not met 
with much approval. Several other consolida¬ 
tions have been proposed, but they have not been 
satisfactory. It is evident that the plans sub¬ 
mitted are not meeting with general approval and 
Congress will probably have to amend the Act 
and give the Commission more power if consolida¬ 
tions are to become a fact. 

3. In time of necessity, due to congestions or 
embargoes, the Commission may make reasonable 
directions with respect to the handling, routing 
and movement of traffic over the lines of any car¬ 
rier, which, in the opinion of the Commission, 
will best improve the service in the interest of 
the public and the commerce of the people. 

4. The power over car service means that the 
supply, movement, distribution, etc., of cars used 
in the transportation of property, including spe¬ 
cial types of equipment, are subject to the juris¬ 
diction of the Commission. 

Whenever the Commission is of the opinion 
that shortage of equipment, congestion of traffic, 
or other emergency requiring immediate action 
exists in any section of the country, the Commis¬ 
sion is authorized to suspend the operation of any 
rules or practices established with respect to car 
service and make reasonable directions without 
regard to the ownership of cars during such 
emergency, as in its opinion will best promote the 
service in the interest of the public and the com¬ 
merce of the people. 


34 Fundamentals of Transportation 

The Commission may require such common use 
of terminals as will best meet the emergency and 
serve the public interest; and may also give direc¬ 
tions for preference or priority in transportation, 
embargoes, or movement of traffic under permits. 
% 

Section III 

Value of Education 

The Value of a Broad Education for Any 
Business .—So generally is the fact recognized that 
the more education a man has, the more efficient 
and desirable employee will he make, that every¬ 
where, in all lines of trade, it is becoming a com¬ 
mon thing to require of applicants for all sorts 
of positions, at least a high school education, and 
the standard for consideration of an applicant in 
an increasing number of organizations is a college 
education. 

Practical, hard-headed business men would not 
make such requirements if experience had not 
taught them that a background of wide, general 
information on many subjects is a valuable asset 
in any employee, no matter what his allotted task 
may be. Situations are likely any minute to arise 
when some of this stored-up knowledge, seemingly 
so foreign to the task in hand, often proves really 
valuable. But beyond this, the habits of clear 
and logical thinking formed, and the power ac¬ 
quired to concentrate on the task at hand, which 
result from any honest effort to secure an edu- 


Development and Regulation 35 

cation, are factors that contribute a large share 
to efficacy and achievement in any man’s work. 

The modern young man, as never before, real¬ 
izes the value of education as is evidenced by the 
thousands of young men who work all day, and 
spend their evenings attending Y. M. C. A. 
Schools, High Schools and Colleges, striving ever 
to fit themselves for higher and better positions. 
It is an inspiration to stand at night in front of 
one of the large high schools in a large city or 
visit the educational department of the Y. M. C. 
A., and observe the great number of young men 
so eagerly seeking for knowledge. 

Definite Training for Definite Tasks .—Valu¬ 
able as is the background of a thorough educa¬ 
tion along broad lines, and valuable as are the 
habits and powers developed in obtaining it, it 
goes without saying that a man must have defi¬ 
nite training and much practice in order to become 
skilled in definite tasks. A high school or col¬ 
lege graduate, other things being equal, is likely 
to make a better and more successful traffic man¬ 
ager than a man with only a grammar school edu¬ 
cation. 

But there is no more royal road to success in 
this line to the high school or college graduate 
than to the grammar school graduate. Each must 
do hard work to master the subject, both in the¬ 
ory and in practice. 

Lest the grammar school graduate should be 
discouraged by the fact that he has had so little 


36 Fundamentals of Transportation 

education, and therefore may not reach the top, 
let him remember that the old fable of the “Hare 
and the Tortoise” is often enacted in the business 
world, when some young man full of ambition 
pushes steadily upward toward a goal, while his 
swifter and more accomplished fellow-worker, 
confident in his superior ability, rests by the way. 

A prominent traffic manager, who has a na¬ 
tional reputation as a traffic expert, entered the 
employ of a large trans-continental line at the 
early age of 15 years, as an office boy. He at¬ 
tended night school and learned stenography. 
Within a short time he was given a stenographer’s 
position and was promoted rapidly, becoming the 
private secretary to the General Manager. An 
opportunity to enter the traffic department of one 
of the largest industrial corporations in the 
United States came to him and he accepted. The 
position was not equal to the one he had, either 
financially or in prestige. He was only a clerk. 
But he continued to attend night school and by 
aid of the education thus obtained in conjunction 
with the practical experience acquired, both while 
with the railroad and in his daily tasks, he, while 
yet a young man, became the Traffic Manager of 
this large corporation. Today he is the Presi¬ 
dent of one of its large branches. What a man 
thinks he can do, he can do. 

Education Plus Practical Experience Expedites 
Success .—Every thoughtful man must admit that 
it is wise for him to secure all the education he 


Development and Regulation 37 

can as a preparation for any sort of life work, 
because the trained, educated mind grasps a sub¬ 
ject and its technique much more quickly than an 
untrained mind, and consequently moves forward 
more rapidly to mastery of it all and to an hon¬ 
ored place of responsibility. Two young men 
begin at the same time their business career in 
the traffic department of a large corporation. One 
is a graduate of a grammar school, and the other 
is a college graduate and has completed a traffic 
course. Both are ambitious to become a Traffic 
Manager. Both apply themselves earnestly and 
assiduously to the work, but the better trained 
mind gets a comprehensive knowledge in far less 
time than does the one whose education must 
come to him through the work alone. Training 
on the job, supplemented by knowledge and pow¬ 
ers acquired through higher education, expedite 
the reaching of the desired goal. 








Chapter 3 

MODERN TRANSPORTATION 
AGENCIES 

COLLATERAL READING: In the Freight Traffic 

Red Book—Traffic Abbreviations; Traffic Glossary; 

Interstate Commerce Act, Section 1. 

Section I 

Present-Day Freight Agencies 

Modes of Carrying Freight .—The present-day 
agencies of transportation or modes of carrying 
freight are: 

All-Rail, 

Rail-and-Water, 

All-Water, 

Express, 

Parcel Post, 

Motor Truck, 

Aeroplane. 

All these agencies are used for the purpose of 
freight transportation in America except aero¬ 
planes, which at present are used only for carry¬ 
ing mail; but undoubtedly they will soon be trans¬ 
porting freight. In foreign countries they are 
now being used to some extent as freight carriers. 

Every man of average experience knows enough 
to describe each of these modes of freight trans¬ 
portation; but, in order that we may have clearly 
in mind what each agency stands for in the traffic 
39 


40 Fundamentals of Transportation 

field, the following brief descriptions are neces¬ 
sary. 

All-Rail Agencies. — All-Rail transportation 
covers the movement of freight entirely by rail¬ 
road, and a larger tonnage is carried by this 
agency than by any other. The railroads divide 
tonnage into two classes: viz., fast freight and 
slow freight. The term “fast freight” as used by 
railroads includes perishable commodities and 
freight taking the higher classification ratings; 
the term “slow freight” includes commodities 
taking the lower classification ratings as well as 
most commodities for which specific commodity 
rates are established. 

These terms, however, are often used by ship¬ 
pers for the purpose of indicating freight for¬ 
warded via standard lines and freight forwarded 
via differential lines (see paragraph following) 
or by water, the former being the “fast” freight 
and the latter being the “slow” freight. While 
the railroads do not guarantee the time when 
freight will reach its destination, they do operate 
fast freight trains which move on schedules, so 
that the time necessary for freight to reach desti¬ 
nation on one of those trains may be reckoned 
with fair accuracy. 

Rail-and-W ater Agencies. — Rail-and-Water 
transportation is usually a cheaper but slower 
method than All-Rail. In domestic commerce 
Rail-and-Water transportation means via the 
Great Lakes, Coastwise Lines, Sound Steamers, 


Modern Transportation Agencies 41 

or the Panama Canal when they participate with 
the railroads in a continuous carriage of shipment 
under common control, management, or arrange¬ 
ment. The lines thus operated are usually 
termed Differential Lines, as they could not 
compete for traffic with All-Rail carriers at 
equal rates; therefore, they are permitted to make 
lower rates to induce patronage and thereby offset 
the better service offered by the railroads. 

When freight is transported via Rail-and- 
Water, unless the tariffs containing rates covering 
this transportation specifically state that the rates 
include marine insurance while on the water lines, 
it should be covered by marine insurance, because 
the responsibility of the carrier is only that of a 
water carrier, under the Federal statutes, which 
is practically nil and is in no way similar to the 
liability assumed for All-Rail carriage. But if 
the rate includes insurance for transportation 
partly by water, the responsibility of the carrier 
is the same as if the property was transported 
wholly by rail. 

All-JVater Agencies .—The cheapest method of 
transportation is via All-Water, and a vast ton¬ 
nage is carried by the water lines. The term All- 
Water means transportation service from port to 
port; that is, the shipment must originate at the 
port from which the vessel sails and be consigned 
for delivery at a port of destination. 

The All-Water domestic routes are the Great 
Lakes, the Barge Canal (Erie Canal), the Coast- 


42 Fundamentals of Transportation 

wise Lines, the large rivers, and the Panama 
Canal. Freight can be transported via the Great 
Lakes and Barge Canal only during the season 
navigation is open. In the winter months trans¬ 
portation via these routes is suspended. 

Steamship lines operating via the Panama Canal 
are strong competitors of the railroads for the 
Pacific Coast traffic and they furnish excellent 
service. 

Freight transportation via All-Water should 
be covered by marine insurance. The necessity 
for marine insurance is on account of the fact 
that the statutes relieve owners of vessels from 
liability, to any extent, for goods that may be 
destroyed or damaged while in the possession of 
the vessel. 

Express Agencies. — Express service is an 
agency of transportation in connection with the 
railroads and has the merits of safety, speed, and 
concentration of responsibility. The express 
companies accept packages of all kinds of mer¬ 
chandise, regardless of value, and assume full 
risk. In the large cities they collect packages 
from shippers, forward them usually on the same 
day on trains travelling at the rate of forty to 
sixty miles per hour, and deliver them to the street 
address of the consignees. 

Parcel Post Agency .—Parcel Post is a Govern¬ 
ment agency, furnishing a convenient and efficient 
means of transporting small packages. The 
service reaches more places than any other trans- 


Modern Transportation Agencies 43 

portation agency, and the rates to nearby cities 
and towns are quite advantageous. The extent of 
the service is limited in respect to the size of the 
packages, the value of the commodities, and the 
quantity in which they may be forwarded. 

When shipments are forwarded via this agency 
they must be delivered to the Post Office at the 
point of origin, but at destination they will be 
delivered at the street address of the addressee. 

On the establishment of the Parcel Post serv¬ 
ice it was thought that it would replace, to a 
great extent, the service given by the express com¬ 
panies; but, while it has met with great favor and 
is largely used by many shippers of small pack¬ 
ages, its service does not equal that given by the 
express companies. 

Motor Trucks as Freight Carriers . — The 
motor truck is a rapidly growing agency of trans¬ 
portation and is becoming an increasingly de¬ 
sirable method of transporting certain classes of 
goods, where the distance of haul is not too great. 
Within the last few years operators of motor 
trucks have established regular routes and are 
becoming strong competitors of the railroads for 
short haul' traffic. The operators arrange to call 
at shipper’s address and transport the property 
direct to the desired delivery point without re¬ 
handling. While the cost of transportation is 
higher than that by rail, it is justified for the 
reason that the articles do not require extensive 
packing and boxing, as rail shipments do, and time 
of transportation is practically guaranteed. 


’ 44 


Fundamentals of Transportation 


Aeroplane Transportation. —Aeroplanes are 
used for transporting mail matter regularly, and 
a company now announces the establishment of 
passenger lines from New York to other cities. 
The aeroplane as a freight carrier is a likely fu¬ 
ture development. 


Section II 

Factors in Selecting Freight Carriers 

Selecting the Right Carrier. —In selecting the 
carrier that would be the most practicable for 
handling the tonnage to or from territory tribu¬ 
tary to water and rail routes, one should become 
familiar with the merits of the various systems 
and the differences in service. The factors to 
be considered are: 

(a) Time, 

(b) Cost, 

(c) Nature of commodity, 

(d) Competitive point, 

(e) Rehandling, 

(f) Distance. 

When Time Is a Factor. —Perishable freight 
is transported by fast freight trains in cars espe¬ 
cially built for that service, as time is essential. 
Frequently, perishable freight is forwarded via 
express. Urgent need for freight would also be 
an essential factor in selecting the fastest route. 

Transportation Cost to Be Considered. —Cost 
is always an important factor in selecting a ca.tr 


Modern Transportation Agencies 45 

rier. Where time is not essential, shipments are 
forwarded via the cheapest or differential route. 

The Commodity Itself Limits Carrier Selec¬ 
tion .—The nature of the commodity has a large 
bearing on the selection of the carrier. Low 
priced merchandise, bulk freight, unusually heavy 
articles, freight destined to competitive points, 
and the avoidance of transfers en route, are fac¬ 
tors which must be considered in forwarding 
freight. 

Where Competing Lines Are to Be Consid¬ 
ered .—A competitive point is one reached by two 
or more carriers. If the competing carriers are 
all-rail lines, the rates for transportation are 
usually equal even though the line of one carrier 
may be more direct than that of another. If the 
competing carrier is a water line, or a rail-and- 
water line, the rate for transportation via these 
routes will be lower than the all-rail rate. 

In the first instance the selection of the carrier 
will be governed by the proximity of either the 
shipper’s or consignee’s place of business to one 
of the competing lines; or the selection may be 
influenced by the better service accorded by one 
of the lines. In the second instance the selection 
will be governed by the nature of the commodity, 
and whether or not quick delivery is necessary. 

The Question of Rehandling .—It is the desire 
of all shippers to avoid rehandling at transfer 
points on the lines of carriers, and they endeavor 
to forward their shipments direct to destination. 


46 Fundamentals of Transportation 

Direct loading of L. C. L. shipments, however, is 
frequently impossible and freight is forwarded 
via one or more transfer points. Many carriers 
endeavor to operate through cars to the large 
commercial centers, for handling L. C. L. ship¬ 
ments in order to avoid transfers. 

Distance of Travel Modifies Choice .—The dis¬ 
tance between the point of shipment and destina¬ 
tion is a factor that must be considered when 
selecting a carrier. For a short distance, the 
motor truck is a preferable agency for transporta¬ 
tion of certain commodities; and frequently for 
long distance transportation, water routes are 
preferable to all-rail. The selection of route, 
however, must be governed largely by the nature 
of the commodity to be transported. 

Section III 

Definitions: Carriers, Interstate, 
Intrastate 

Common Carrier .—Any person or company 
that undertakes to transport property for pay 
when called upon to do so, whether by land or 
water, is a common carrier. 

Private Carrier .—Any person or company that 
undertakes to transport property by special agree¬ 
ment is a private carrier. 

Carriers Subject to Interstate Commerce Act .— 
All common carriers engaged in interstate com- 


Modern Transportation Agencies 47 

merce are not subject to the Interstate Commerce 
Act; only the carriers specifically named therein 
are subject to the Act. 

There are a number of kinds of common car¬ 
riers that are subject to the Interstate Commerce 
Act, but in this course we shall treat only of those 
engaged in the transportation of property wholly 
by railroad or partly by railroad and partly by 
water when both are used under a common con¬ 
trol, management, or arrangement, for a continu¬ 
ous carriage of shipment; and also Express com¬ 
panies. 

Intrastate Traffic .—Traffic having origin, des¬ 
tination and entire transportation within the 
boundaries of a state is intrastate traffic and is 
not regulated by the Interstate Commerce Com¬ 
mission, unless the rates, classifications, regula¬ 
tions, or practices cause unjust discrimination 
against interstate or foreign commerce. State 
laws are enforced by State Commissions generally 
designated as Public Service, Railroad, or Utility 
Commissions. It is necessary for a shipper en¬ 
gaged in intrastate traffic to ascertain the laws 
governing transportation in that particular State. 

The transportation of property in the United 
States from port to port (freight originating at 
one port and destined to another port) by steam¬ 
ship companies in coastwise and inter-coastal 
trade, or on the Great Lakes, is also interstate 
traffic but is subject to the jurisdiction of the 
United States Shipping Board, a Federal body 


48 Fundamentals of Transportation 

which functions under authority of the United 
States Shipping Act and Merchant Marine Act, 
in a similar manner to the Interstate Commerce 
Commission. 

The commerce of this country, however, is 
largely interstate, and it is far more essential for 
a shipper to acquire a knowledge of the Federal 
laws than of the State laws. Hence in that part 
of this course which treats of Domestic Traffic, 
we shall consider only interstate commerce. 


Chapter 4 

SHIPPING PAPERS 

COLLATERAL READING: In the Freight Traffic 

Red Book—Traffic Abbreviations; Traffic Glossary; 

Bills of Lading Act; Standard Forms of Shipping 
Papers. 

Section I 

Bills of Lading 

Varieties of Bills of Lading .—The Bill of 
Lading is a very important document. All ship¬ 
pers should be thoroughly familiar with the uses 
of this instrument and with the conditions printed 
thereon. It is a contract made between shipper 
and carrier, in which the latter agrees to trans¬ 
port goods for the former under certain specified 
conditions. If the shipper is not willing to accept 
those conditions, he may forward his goods at 
the carrier’s risk, on payment of a higher rate; 
but this practice is not usual among shippers. 

There are four kinds of bills of lading used in 
transportation, each serving a special purpose. 
They are: 

Uniform Straight Bill of Lading. 

Uniform Order Bill of Lading. 

Uniform Live Stock Contract. 

Uniform Through Export Bill of Lading. 

The last one named will not be discussed until 
we reach that part of the course devoted to Ocean 
49 


50 Fundamentals of Transportation 

Transportation. The others will need examina¬ 
tion now. 

Straight Bill of Lading .—For ordinary domes¬ 
tic freight traffic the Straight bill of lading and 
the Order bill of lading are used. In a Straight 
bill of lading it is stated that the goods are con¬ 
signed or destined to a specified party. This 
document is not negotiable and the words “Non- 
Negotiable” must be printed or written thereon. 
On delivery of merchandise to carrier for trans¬ 
portation, this bill of lading is signed by the 
receiving clerk and is the shipper’s receipt for the 
goods. The Straight bill of lading is used for 
the large majority of shipments. 

Order Bill of Lading .—There are four distin¬ 
guishing features about an Order bill of lading; 
namely, 

1. The goods are consigned to the order of the 
party named in the bill of lading. 

2. The name and post office address of the 
party to notify on arrival of the consignment 
must always be written on the bill of lading. 

3. The Order bill of lading is a negotiable 
document, and as such may be used for several 
purposes. It is most frequently used when ship¬ 
pers desire to collect for the value of shipments 
prior to delivery, and is similar to C.O.D. trans¬ 
actions. The railroads will not accept shipments 
for C.O.D. delivery, so the Order bill of lading 
must be used when shippers desire payment prior 
to delivery of goods forwarded by freight. When 


Shipping Papers 


51 


this method of shipment is employed, shippers 
usually consign the freight to their own order, 
and after bill of lading is signed by the agent of 
the railroad it is forwarded, with invoice and 
draft attached, through the bank in which the 
shipper deposits, to be delivered to the purchaser 
of the goods against his acceptance of the draft. 

4. For the purpose of making the Order bill 
of lading readily distinguishable from all other 
bills of lading, it is printed on yellow paper. The 
Memorandum bill of lading and the Shipping 
Order are printed on blue paper. 

This method of forwarding also enables ship¬ 
pers at distant points to collect from the home 
bank the value of the consignment, as soon as 
the bill of lading is properly signed. Many ship¬ 
pers would be unable to finance their business 
without this method of quick collection for goods 
shipped. The use of an Order bill of lading does 
not cause any reflection on the credit of the party 
who negotiates the document, and frequently 
order shipments are made to industries of the 
highest financial standing. For instance, a shipper 
of flour in the West, or a shipper of fruit on the 
Pacific Coast, may forward large quantities of his 
goods to the East, consigning the shipments to 
his own order. On obtaining signed bill of lading 
from the railroad agent he sends it to the bank 
with which he transacts business and attaches 
thereto the invoice for the value of the freight 


52 Fundamentals of Transportation 

covered thereby, together with a draft for the 
amount of invoice and this amount less discount 
is then credited to his account. 

Live Stock Contract .—Instead of the uniform 
bill of lading, the Live Stock Contract is a form 
used by carriers in the Official Classification ter¬ 
ritory for shipments of live stock. It also con¬ 
tains a contract with the man or men in charge 
of the shipment. This document is not nego¬ 
tiable. 

Exchange Bill of Lading .—An Exchange bill 
of lading is simply a regular bill of lading issued 
in exchange for another. When a shipment has 
been accorded a change in destination, name of 
consignor, or name of consignee, en route, in ac¬ 
cordance with a diversion tariff, and it is desired 
to obtain the through rate applicable via the point 
of diversion, an Exchange bill of lading may be 
issued. 

This Exchange bill of lading must indicate 
clearly that it is an Exchange bill of lading, and 
the date and number of the document for which 
it is exchanged and the name of the station at 
which the original document was issued must be 
shown thereon. The usual purpose for this action 
is to conceal the name of the original shipper from 
the ultimate consignee. 

In cases of diversion, if Exchange bills of lad¬ 
ing are not desired, an endorsement, in lieu of 
exchange is inserted on the original document. 


Shipping Papers 


53 


Memorandum Bill of Lading. —The Memo¬ 
randum bill of lading is simply a duplicate of a 
bill of lading and is retained by shippers for rec¬ 
ord purposes. Carriers frequently sign this docu¬ 
ment, on request, and write on it the word “dupli¬ 
cate.” 

Shipping Order. —The Shipping Order is a 
duplicate of the bill of lading. It is retained by 
the carrier and a waybill is made from it after 
the weight of the freight covered thereby together 
with route and rate have been noted thereon by 
different railroad clerks. 

Section II 

Other Transportation Documents 

Forms for Special Purposes. —In addition to 
the shipping papers described in Section I, there 
are several documents used for special purposes 
in transporting freight. They are: 

The Waybill. 

Notice of Arrival. 

Freight Bill. 

Delivery Receipt. 

Indemnity Agreement. 

Bond of Indemnity. 

Waybill. —It is the practice of some of the 
large railroads to have the billing agent, in one 
typing, make out the Waybill, Memorandum 
Freight Bill, Freight Bill, Delivery Receipt, No- 


54 Fundamentals of Transportation 

tice of Arrival, and copy of Waybill. A copy 
of the Freight Bill is retained for his records; 
and, on interline business, the copy of Waybill 
is forwarded to the auditor. The balance of the 
papers are sent to the delivery agent to await 
arrival of freight. 

Notice of Arrival .—On arrival of freight at 
destination, notice is promptly sent or mailed to 
the consignee. This notice shows number of 
packages, description of articles, route, rate, 
weight, and amount of freight charges; also the 
station where delivery may be obtained, and the 
time allowed for removal before storage charges 
will begin. 

Freight Bill .—There are two kinds of Freight 
Bills; viz., a Freight Bill showing the amount of 
charges, if collected at destination, and a prepaid 
Freight Bill, which is given to shipper on prepay¬ 
ment of the amount of charges shown thereon. 

On surrender of arrival notice, or bill of lad¬ 
ing, and payment of charges (if collect), it is 
receipted by cashier and given to consignee to¬ 
gether with an order for delivery. If charges 
are prepaid, Freight Bill reading “prepaid” is 
given to consignee with the delivery order. 

Delivery Receipt .—The Delivery Receipt is 
turned over to the delivery clerk, who obtains the 
consignee’s signature thereon after delivery of the 
articles named therein and surrender of the cash¬ 
ier’s order. 


Shipping Papers 


55 


Indemnity Agreement .—There are two forms 
of the Indemnity Agreement (sometimes called 
Letter of Indemnity). One form is required by 
railroad freight claim departments when a claim¬ 
ant is unable to furnish in support of claim a paid 
freight bill, or original bill of lading. The other 
form is used to indemnify the railroad company 
for delivery of an “Order” consignment without 
surrender of original bill of lading, properly en¬ 
dorsed, and must be secured by the deposit of a 
certified check for 125 per cent of the invoice. 
Under this agreement this check is retained by 
the carrier as security until surrender to the deliv¬ 
ering carrier of the original bill of lading properly 
endorsed, or until acceptance by the treasurer of 
the delivering carrier of a surety bond in accord¬ 
ance with the requirements of that carrier. 

Bond of Indemnity .—A Bond of Indemnity is 
a surety given to a transportation line to indem¬ 
nify it against all claims or liability, for any action 
on its part for which it might be legally liable. 
It is generally used when an “Order” bill of lading 
has been lost or delayed, and usually when ship¬ 
pers desire to stop delivery or divert a consign¬ 
ment. This bond must be for twice the amount 
of the invoice value of the property. The party 
executing the bond agrees to deliver to the deliv¬ 
ering carrier the original bill of lading properly 
endorsed when the same be had or found; then the 
obligation will be void; otherwise the bond will 
remain in full force and effect. 


56 Fundamentals of Transportation 

Section III 

The Law Governing Bills of Lading 

Bills of Lading Act .—This Congressional Act 
relates to bills of lading in interstate and foreign 
commerce, when issued by any common carrier 
for the transportation of goods in interstate com¬ 
merce, as defined in Section 1 of the Interstate 
Commerce Act. The Act should be carefully 
read, as it is the law governing the use of the bill 
of lading. The important provisions of the Act 
are as follows: 

(a) Section 2 defines a Straight bill of lading, 
and in Section 6 it is specified that this bill of 
lading is not negotiable. 

(b) Section 3 defines an Order bill of lading, 
states that it is negotiable, and that nothing 
shall affect its negotiability except an agreement 
in writing upon its face signed by the shipper. 

(c) Section 8 provides that the carrier shall 
deliver goods on demand of the consignee named 
in a Straight bill of lading, or on demand of the 
lawful holder of an Order bill of lading, properly 
endorsed, on surrender thereof; and that, when 
goods are delivered, the lawful holder of the 
Order bill of lading shall sign an acknowledg¬ 
ment of their receipt. 

(d) Section 9 states to whom the carrier is 
justified in delivering goods. 

(e) Section 10 defines an unlawful delivery 
on the part of carrier, and Sections 11 and 12 


Shipping Papers 57 

define the liability of carrier for failure to de¬ 
liver goods or any part thereof. 

(f) In Section 13 it is provided that any alter¬ 
ation of a bill of lading, without authority, after 
it is issued shall be void; and that, in such a case, 
the bill of lading shall be enforceable according 
to its original tenor. 

(g) Sections 20 and 21 define the liability of 
carrier, when goods are loaded by carrier and 
when loaded by shipper, respectively. 

(h) Section 22 defines very explicitly the lia¬ 
bility of the carrier, whose authorized agent has 
issued a bill of lading for goods to be transported 
in interstate commerce. This section makes the 
carrier liable to the lawful holder of an Order 
bill of lading, who has given value in good faith, 
relying on the description of the goods in said 
bill of lading, for damages caused by the non¬ 
receipt by the carrier of all or any part of the 
goods or their failure to correspond with the de¬ 
scription thereof in the bill of lading. This Sec¬ 
tion is very important because it will be observed 
that the carrier is not only responsible for the 
quantity shown on the bill of lading, but he is also 
responsible if goods are not as described in the bill 
of lading. 

(i) Section 28 provides that an Order bill of 
lading may be negotiated by the person to whose 
order the goods are consigned, with an endorse¬ 
ment in blank or to a specified person. If en¬ 
dorsed to a specified person, it may be negotiated 
again by the endorsement of such person in blank 


58 Fundamentals of Transportation 

or to another specified person. Subsequent en¬ 
dorsement may be made in like manner. 

For illustration, a shipment is consigned to 

Order John Roe, 

Notify John Doe, 

500 Broadway, 

New York , N. Y. 

To properly endorse the bill of lading in blank, 
the endorsement should simply read John Roe, 
but if endorsed to a specified person it should 
read: Deliver to John Doe, or Deliver to Order 
of John Doe . John Doe could then endorse the 
bill of lading either in blank or to the order of 
John Smith, and subsequent endorsement could 
be made in like manner. 


Chapter 5 

FREIGHT CLASSIFICATIONS 

COLLATERAL READING: In the Freight Traffic Red 
Book—Freight Classification. 

Section I 

The Development of Classification 

Importance of Classification .—There are many 
thousands of kinds of commodities transported by 
railroads and it is plainly evident that it would 
not be practicable, even if it were possible, for the 
carriers to publish a separate rate for each com¬ 
modity. Therefore, the railroad companies divide 
all known commodities into groups or classes and 
publish rates applicable to the different classes. 

In his book, “Railroad Rates and Regulations” 
(which is suggested as a good book to road), W. 
Z. Ripley, in discussing Classification, says: 

“A few of the delicate questions which have 
puzzled the Interstate Commerce Commission 
may give some idea of the complexity of the 
problem, for example: 

“Are iron-handled bristle shoe-blacking daubers 
machinery or toilet appliances? What is the dif¬ 
ference, as regards railway carriage, between a 
percolator and an every-day coffee pot? When 
is a boiler not a boiler? If it be used for heating 
purposes rather than steam generation, why is it 
not a stove? What is the difference between 
raisins and other dried fruits?” 


59 


60 Fundamentals of Transportation 

The Classification of all these articles is a 
factor of primary importance in the making of 
freight rates both from a public and private point 
of view. 

Theoretical Basis of Classification .—On the 
basis of economic theory the justification for a 
differentiation of charges between various classes 
of commodities may be considered primarily from 
two distinct points of view: 

The first is that on operation, which determines 
cost. 

The second is the value of the service as re¬ 
lated to the value of the commodity. 

Some of the factors which justify differences 
in ratings were well put by the Interstate Com¬ 
merce Commission in 1897, as follows: 

Whether commodities were crude, rough, 
or finished; liquid or dry; knocked down or 
set up; loose or in bulk; nested or in boxes, 
or otherwise packed; if vegetables, whether 
green or dry, desiccated or evaporated; the 
market value and shippers’ representations 
as to their character; the cost of service, 
length and direction of haul; the season and 
manner of shipment; the space occupied and 
weight; whether carload or less-than-carload 
lots; the volume of annual shipments to be 
calculated on; the sort of car required— 
whether flat, gondola, box, tank, or special; 
whether ice or heat must be furnished; the 
speed of trains necessary for perishable or 


Freight Classifications 


61 


otherwise rush goods; the risk of handling, 
either to the goods themselves or to other 
property; the weights, actual and estimated; 
the carrier’s risk or owner’s release from 
damage or loss. 

Phases of Classification Development .—The 
practice of classifying freight has been in effect 
for a very long time. At first freight was very 
crudely classified as light and heavy articles, the 
charges being assessed on the light weight articles 
by the cubic foot and on the heavy ones by weight. 
The Louisville & Nashville Railroad originally 
divided freight into three classes: viz., bulk 
freight, heavy freight, and live stock. It soon 
developed, however, that there was a great in¬ 
crease in the volume of traffic and in the diversity 
of articles offered for transportation, hence more 
elaborate classifications became necessary. 

During the first fifty years of railroad develop¬ 
ment each railroad issued its own classification 
and in 1887 when Congress enacted the Inter¬ 
state Commerce Act there were about 130 differ¬ 
ent classifications in effect. At that time it was 
impossible for a shipper, unless he was a rate 
expert, to determine in advance of shipment what 
the rate would be or what rates were paid by 
his competitors. 

The natural growth of Classification, in a rap¬ 
idly growing country like ours, has manifested 
itself in three distinct ways; namely, in 


62 Fundamentals of Transportation 

1. A continuous increase in the number of 
items of freight separately enumerated. 

2. A growing distinction in rates between C.L. 
and L.C.L. shipments. 

3. A steadily enlarging volume of special rules 
and descriptions. 

There were about 1,000 commodities enu¬ 
merated in the East in 1886. The first Official 
Classification in the following year increased the 
number of items to 2,800; by 1893 there were 
twice that number. In 1915 there were approxi¬ 
mately 5,800. The number now contained in 
the Consolidated Classification has undoubtedly 
been increased by the consolidation of the three 
Classifications. 

Distinction Between C.L. and L.C.L. Classifi¬ 
cation Ratings .—The natural tendency in the de¬ 
velopment of Classification is an increase in the 
number of separate ratings for large and small 
shipments. The fundamental justification for 
lower ratings on C.L. than L.C.L. is the economy 
in use of equipment, terminal expense, and clerical 
detail. The normal growth of trade means an 
increase in the number of separate carload rates 
and the increase in the number of separate car¬ 
load ratings conforms territorially to the growth 
in the volume of trade. 

Just before the passage of the Act to Regu¬ 
late Commerce, there was no distinction between 
carload shipments and small lots, in 85 per cent 
of the articles enumerated. 


Freight Classifications 


63 


A sudden change supervened in the first Official 
Classification issued after the Federal Act. The 
number of C.L. ratings was suddenly raised to 
900, provoking a storm of protest from eastern 
shippers, who resented this advantage to jobbers 
in the West and South, because it enabled the 
latter to buy their supplies directly at wholesale. 
Let, notwithstanding this protest, the number of 
separate C.L. ratings was steadily augmented 
year after year. By 1893 more than half the 
articles enumerated in the Official Classification 
were allowed a lower rate for large shipments. 
Today the majority of commodities which move 
in carloads are given a carload rating. 

Section II 

Classification Territories and Ratings 

The Three Classifications .—Classification Ter¬ 
ritories are known as the Official, the Southern, 
and the Western Territories. 

The Official Classification applies to traffic 
within the region north of the Ohio River and 
the line of the Norfolk and Western R. R. into 
Norfolk, Va., including New England and the 
territory east of the Mississippi River, except 
Minnesota, Wisconsin, and the northern peninsula 
of Michigan. 

The Southern Classification is in force in the 
region south of the Official Territory and east of 
the Mississippi River. 


64 Fundamentals of Transportation 

The Western Classification covers the northern 
peninsula of Michigan, the states of Wisconsin 
and Minnesota, and the rest of the United States 
west of the other two territories. 

The Official Classification contains six num¬ 
bered classes and two rule classes. The Southern 
Classification contains six numbered classes and 
four lettered classes. The Western Classification 
contains five numbered classes and five lettered 
classes. Each Classification, however, contains 
multiples of first class progressing from one and 
one-quarter times first class up to four times first 
class. 

Classification Governing Between Territories. 
The rates contained in a tariff are always gov¬ 
erned by one Classification and the name of the 
Classification governing is shown on the title page. 

If a Joint Tariff contains Through Rates from 
points in one Classification Territory to points in 
another, the governing Classification may be the 
Classification for the Territory of the points of 
origin or the Classification for the Territory of 
the points of destination. There is no fixed rule 
as to which Classification shall govern; but when 
the Joint Rates are established the governing 
Classification is determined. The components of 
Combination Rates from points in one Classifica¬ 
tion Territory to points in another are gen¬ 
erally governed by the respective Classifications; 
that is, each component is governed by the Classi¬ 
fication for the Territory in which it is effective. 


Freight Classifications 


65 


Classification Committees .—These committees 
are appointed by the carriers. Their duty is to 
fix the rating which is to be assigned to the several 
articles embraced in the respective Classifications, 
and to determine the general rules and regula¬ 
tions. 

The Classification, however, is always subject 
to whatever exceptions any railroad or group of 
railroads may choose independently to put in 
force. These exceptions are, in many cases, pub¬ 
lished in the Freight Tariffs to which they apply 
and sometimes in a separate publication. 

At the present time, freight Classification for 
all the carriers of the United States is performed 
mainly by three committees known as the Official, 
the Southern, and the Western Committees. 

Practicable Classification .—As actually effected 
in practice, Classification of freight seems to have 
been largely ascertained by experience as to oper¬ 
ating cost and value of service. 

The object sought has, in the main, been to 
establish ratings which will move the largest 
amount of business at profitable rates. 

The present procedure of classification com¬ 
mittees, when reviewing ratings, is to make an 
exhaustive research in order to determine with 
accuracy all of the elements which are recognized 
as affecting the rating. 

The same commodity is often placed in two or 
three or even more classes, according to the man- 


66 Fundamentals of Transportation 

ner in which the goods are packed and otherwise 
prepared for shipment. 

Uniform Classification .—Efforts have been 
made, owing to persistent demand, to unify the 
several Freight Classifications and to substitute 
for them a single Uniform Classification. 

There are two great obstacles incident to the 
substitution of a single Uniform Classification; 
namely: Our vast territories and the extreme 
diversity of agricultural and industrial conditions. 

The merits of a Uniform Classification are 
quite numerous. A Uniform Classification would 
be most desirable because it would enable pro¬ 
ducers to know actually what would be the cost of 
getting their commodities to market and how 
much they would have to pay for supplies brought 
to them by the railroads. It would also make it 
easier for shippers to detect discriminations. 

A permanent committee has been appointed 
for the purpose of preparing a Uniform Classifi¬ 
cation. Undoubtedly their efforts will meet with 
success, although the difficulties in the way of a 
Uniform Classification seem almost insurmount¬ 
able. 

Consolidated Classification .—At the present 
time, there is one Major Classification called the 
Consolidated Classification, which constitutes a 
consolidation of the three large Classifications— 
the Official, the Southern, and the Western. This 
Classification contains rules and ratings for the 


Freight Classifications 


67 


Official, the Southern, and the Western Classifi¬ 
cation Territories; there being almost entire uni¬ 
formity in the rules, commodity descriptions, and 
minimum C.L. weights and uniformity, also, in 
many ratings, particularly in the higher classes. 

The Consolidated Classification is a valuable 
step forward toward a Uniform Classification. 
Its merits are quite apparent when it is desired to 
determine rates for shipments moving through 
different Classification Territories because it is 
necessary to consult only one publication instead 
of two or three as was formerly necessary. 

Exception Sheet and Tariff Rules .—An Excep¬ 
tion Sheet is a publication containing Classification 
ratings and rules different from those contained in 
a Major Classification. When both the Classifi¬ 
cation and the Exception Sheet are referred to in 
a Tariff, as governing the rates published therein, 
the Ratings, Rules, and Regulations published in 
the Exception Sheet take precedence over any con¬ 
tained in the Classifications, except as may be 
otherwise specifically stated. 

Frequently Tariffs are issued which contain only 
a few exceptions to the Classification and these 
exceptions are shown in the Tariff itself. Often, 
however, the exceptions to the Classification are 
so numerous that the carrier publishes a separate 
Tariff containing its exceptions to the Classifi¬ 
cation. In the large agency Tariffs it is usually 
stated in the governing rules that the rates named 
are governed by the exceptions to the Classifica- 


68 Fundamentals of Transportation 

tions of the individual carriers as listed. There¬ 
fore, in obtaining rates from a Tariff containing 
a rule of this kind, it is necessary to consult the 
exceptions to the Classification of the individual 
carrier over whose line shipment is to be for¬ 
warded provided it is listed in the Tariff as hav¬ 
ing published an Exception Sheet. 

The Exception Sheet may provide for a dif¬ 
ferent style of package; or perhaps it may au¬ 
thorize exceptions on shipments of estimated 
weight for a package rather than actual weight; 
or it may arrange for a different class, generally 
one lower than that authorized in the Classifica¬ 
tion; but whatever is specified is a part of the 
rate and must be quoted if authorized. How¬ 
ever, the Rules and Regulations published in a 
Tariff take precedence over any conflicting Rules 
and Regulations contained in either the Classifica¬ 
tion or Exception Sheet, by which the latter is 
governed unless otherwise specifically stated. 

State Classifications .—Certain states have Clas¬ 
sifications for intrastate traffic and the three great 
Classifications are supplemented, or displaced by 
others. In Florida, Georgia, Illinois, Texas, Vir¬ 
ginia, and some other states, Classifications ap¬ 
plicable only to intrastate traffic have been estab¬ 
lished. Some of the states, particularly Illinois, 
have interesting and excellent Classifications, but 
in handling interstate traffic it is necessary only to 
consult the Consolidated Classification. Shippers 
located in states having state Classifications must 


Freight Classifications 


69 


be familiar with these publications in order to 
handle their intrastate business. 

Requests for Changes .—One of the important 
duties of a traffic manager is to obtain Classifica¬ 
tion adjustments. If, in his opinion, the Classifi¬ 
cation rating of a commodity handled by the con¬ 
cern he represents is unjust, unreasonable, or dis¬ 
criminatory, forms of application for a change in 
rating or for a rating on a commodity not indexed 
by name in the Classification may be obtained from 
the respective Classification Committees. These 
forms should be filled out correctly and an oppor¬ 
tunity for a hearing is usually afforded the peti¬ 
tioner when he can make oral argument in support 
of his petition. 













Chapter 6 

INTERPRETATION OF CLASSIFICATION 
RULES 1 TO 13 

COLLATERAL READING: In the Consolidated 
Classification—Rules 1 to 13. 

The Skeleton Classification .—One of the es¬ 
sential qualifications for a traffic man is that he 
should be thoroughly familiar with the Rules of 
the Consolidated Classification, particularly those 
rules which refer to the commodities of the in¬ 
dustry in which he is engaged. 

Every student should have a copy of the Con¬ 
solidated Classification a!nd should understand 
its construction. 

In solving many of the problems given in this 
course of instruction, it will be necessary for the 
student to understand how to interpret the Clas¬ 
sification in order to determine the correct Rat¬ 
ings. 

At the top of each page containing the list of 
commodities for which ratings are furnished, and 
over the rating columns, are shown the Classifica¬ 
tions which govern; viz., Official, Southern, and 
Western. 

Interpreting the Rules .—An illustration of cor¬ 
rect interpretation is as follows: If a shipment 
is destined to a point in the Southern Classifica¬ 
tion Territory, say Memphis, Tenn., the tariff 
71 


72 Fundamentals of Transportation 

applicable should be consulted to ascertain the 
governing Classification, which would be the 
Southern Classification. In the column under the 
heading “Southern” would be found the rating. 

In order that you may quickly gain some de¬ 
gree of facility in interpreting, this Chapter and 
Chapter 7 will be devoted to Interpreting the 
Classification Rules. 

Rule 1. Bill of Lading Conditions .— (a) This 
rule provides that when property is trans¬ 
ported subject to the provisions of the Consoli¬ 
dated Classification the acceptance and use of the 
Uniform Bill of Lading are required. Under the 
Uniform Bill of Lading, the liability of the car¬ 
rier is specifically limited below the liability of the 
carrier under the common law and the Federal 
and State statutes applicable thereto. The ship¬ 
per has the option of refusing to ship under the 
Uniform Bill of Lading conditions and, by paying 
a rate ten per cent higher, he may ship property 
at carrier’s risk as defined by common law. By 
allowing this option to shippers the carriers are 
permitted to limit their liability, which they could 
not do otherwise. 

(b) When the terms of the bill of lading con¬ 
tract are modified, a notation to that effect is 
made on the face of the bill of lading, which 
must be signed by the agent of the carrier. 

(c) As the Classification covers some move¬ 
ments over routes which are partly rail and partly 
water or over water lines entirely, the rule pro- 


Classification Rules 1 to 13 73 

vides that the marine risk is not assumed unless 
the tariff so provides. 

Rule 2. Penalties for False Representation .— 
(a) This rule quotes in part Section 10 of the 
Interstate Commerce Act, which prohibits false 
classification, weighing, or any other device where¬ 
by the shipper willfully attempts to defraud the 
carrier. The maximum penalty for a violation of 
this section upon conviction is a fine of $5,000 
and two years’ imprisonment. 

(b) On the other hand, merchandise is fre¬ 
quently improperly packed or described through 
carelessness or negligence, and the carriers have 
inspectors whose duties are to examine shipments 
to determine that they are correctly billed, to in¬ 
crease the charges if error is found, and to call 
shipper’s attention to the matter. 

Rule 3. Acceptance of Freight. — This rule 
provides against the acceptance of articles of ex¬ 
traordinary value; such as, currency, valuable 
papers, jewelry, etc. These should not be shipped 
by freight, but by express transportation or regis¬ 
tered mail. 

Rule 4. Undesirable Freight. — Under this 
rule, carriers reserve the right to refuse certain 
freight, which is liable to impregnate or other¬ 
wise damage equipment or other freight, or they 
can accept such freight ^t certain periods. 

Rule 5. Freight Must Be in Specified Form .— 
This rule provides that freight tendered for trans- 


74 Fundamentals of Transportation 

portation must be in the form as specified in the 
separate description of articles assigned to the 
various classes in the Classification. Rules 40 and 
41 contain definitions of containers and elaborate 
specifications for the construction of barrels, 
boxes, and other containers, so as to comply with 
the specific regulations, and thereby afford a safe 
package for transportation by the carriers. 

Section 3, of this rule, provides that when the 
containers and packing of articles received for 
transportation do not comply with the specifica¬ 
tions of Rule 40, the rating on the articles would 
be one class higher, and when articles are received 
in containers of a kind, the use of which is not 
specifically provided in the description, quite se¬ 
vere penalties are inflicted by increased ratings, 
but this Rule cannot be used as a basis for quot¬ 
ing rates in advance of shipping. 

Examples: 

1. Articles in crates would take one class higher 
than in barrels or boxes, whichever is the 
higher. 

2. Articles forwarded in pails, kits, or tubs 
would take two classes higher than in barrels 
or boxes, whichever is the higher. 

3. Articles forwarded loose would take three 
classes higher than barrels or boxes, which¬ 
ever is the higher. 

Rule 6. Marking. — (a) This rule provides 
that less than carload freight must be marked 
exactly as consigned in the bill of lading, and gives 


Classification Rules 1 to 13 75 

details as to the method of marking. While 
transportation companies require their agents to 
compare the shipping ticket with the marks on 
packages and to call upon the shippers for cor¬ 
rection, when a discrepancy between the two is 
found, this does not relieve the shipper of the 
responsibility of marking packages in accordance 
with the shipping ticket. Improper marking is 
directly responsible for the majority of stray 
packages. 

(b) When a shipment is consigned “To Order” 
it must be so marked, and it must be further 
marked with an identifying symbol or number, 
which must be shown on the shipping order and 
on the bill of lading. 

(c) When second-hand cases or goods are re¬ 
shipped, all old marks must be removed or 
obliterated. 

(d) It is unnecessary to mark freight shipped 
in carload quantities, but freight in excess of full 
cars must be marked as required for less than 
carload freight, except when such excess is 20,000 
pounds or more. However, if a carload shipment 
is to be transported by water in part of its jour¬ 
ney, each package should bear distinguishing 
marks so that it may be identified in case of sepa¬ 
ration from the remainder of the shipment 

(e) All special marks and numbers must ap¬ 
pear in the bill of lading. 

(f) It is also permissible to show such special 
marks as “Glass,” “Keep Dry,” “This Side Up,” 
“Handle with Care,” etc. 


76 Fundamentals of Transportation 

Rule 7. Consignment of Freight. — This 
rule provides that the name of only one shipper, 
one consignee, and one destination shall appear 
in the bill of lading, unless the shipment is con¬ 
signed to order of the shipper or some other 
party; in which event the name of the party to 
be notified upon arrival at destination may be 
shown. 

In any event, all this information, except 
the name of shipper, which is shown on the bill 
of lading, must be shown on packages when for¬ 
warded in less-than-carload quantities. However, 
it is always advisable, in forwarding a straight 
consignment, to have the name and address of 
shipper marked on the packages. 

This rule permits showing in bill of lading the 
points at which shipments are to be stopped in 
transit when such stoppage is authorized by the 
carrier’s tariffs. 

When an “Order” bill of lading is lost or de¬ 
layed the property may be delivered upon receipt 
by the carrier’s agent of a certified check for an 
amount equal to 125 per cent of the invoice value 
of the property, or at the carrier’s option, upon 
the receipt of a bond for twice the amount of 
the invoice value of the property, or the carrier 
may accept a blanket bond. The latter arrange¬ 
ment is sometimes made by large receivers of 
“Order” shipments in order to avoid delay in 
delivery, but the surety, amount and form of the 
bond must be satisfactory to the carrier. 


Classification Rules 1 to 13 77 

Rule 8. Advance Charges. — Under this Rule 
the carriers must not pay the shippers, or their 
draymen or warehousemen, any charges and 
carry those charges forward on their billing to 
be collected from the consignee. 

Rule 9. Shipments Not Worth Charges .— 
When in the judgment of the agent at point of 
shipment the property would not at forced sale 
realize the charges, a prepayment of the charges 
must be made or payment guaranteed. 

Rule 10. Mixed Carloads .—This Rule is very 
complex and it is quite difficult to understand. 
Without question a whole chapter could be writ¬ 
ten in explanation of its different provisions. 

Under this Rule, except as otherwise provided, 
a number of different articles for which carload 
ratings are provided may be forwarded in one car 
by one consignor to one consignee and destination 
at the carload rate applicable to the highest 
classed article, and at the highest carload mini¬ 
mum weight provided for any of the articles. 

Section 3 of this Rule provides that when the 
aggregate charge upon the entire shipment is 
made lower by considering the articles as if they 
were divided into two or more separate carloads 
the shipment will be charged accordingly, as fol¬ 
lows : 

(a) Under the Official Classification, the 
charges on each separate carload will be based 
upon the carload rate applicable to the highest 
classed article therein, and the highest carload 


78 Fundamentals of Transportation 

minimum weight provided for any of the articles 
therein. 

(b) Under the Southern and Western Classifi¬ 
cations, the same provisions apply, except if one 
of the carloads is subject to a commodity rate, the 
carload minimum weight applicable to that rate 
will apply on such carload. 

An illustration of paragraph (a) is as follows: 

A shipment from New York City to Minneapo¬ 
lis, Minn., consisting of: 

Actual Minimum Rating 
Weight C.L.Wt. L.C.L.-C.L. 
100 bdls. Sand Paper 20000 lbs. 36000 lbs. 3 5 

100 bxs. Steel Tacks 15000 lbs. 36000 lbs. 4 5 

50 crts. Oilcloth 15000 lbs. 30000 lbs. 2 4 

65 bxs. Twine 13000 lbs. 30000 lbs. 3 4 

would be billed thus: 


35000 lbs. as 36000 lbs. @ 78c per 100 lbs.$280.80 

28000 lbs. as 30000 lbs. @ 90c per 100 lbs. 270.00 

Total.$550.80 


The second, third, fourth and fifth class rates 
from New York City to Minneapolis are 169^c, 
129c, 90c, and 78c respectively. If these com¬ 
modities were billed at actual weight at the L.C.L. 
rate, charges would be: 


33000 lbs. @ 129c per 100 lbs.$425.70 

15000 lbs. @ \69y 2 z per 100 lbs. 254.25 

15000 lbs. @ 90c per 100 lbs. 135.00 


Total. 


.$814.95 











Classification Rules 1 to 13 79 

If the shipment was billed at the total actual 
weight at the C.L. rate for the highest classed 
article, charges would be: 

63000 lbs. @ 90c per 100 lbs.$567.00 

An illustration of paragraph (b) is as follows: 

A shipment from Chicago, Ill., to San Fran¬ 
cisco, Calif., consisting of: 

Actual Minimum Rating 

Weight C.L.Wt. L.C.L.-G.L. 
50 bxs. Auto T’k R’ks 12000 lbs. 30000 lbs. 2 A 

50 bxs. Auto Steel Hubs 16000 lbs. 30000 lbs. 3 A 

50 bxs. Shock Absorbers 15000 lbs. 30000 lbs. 2 4 

50 crts. Bumper Guards 14000 lbs. 30000 lbs. 2 4 

60 bxs. Auto Tire Ch’s 24000 lbs. 30000 lbs. 2 4 

would be billed thus: 


29000 lbs. as 30000 lbs. @ 311c per 100 lbs.$933.00 

28000 lbs. as 30000 lbs. @ 266c per 100 lbs. 798.00 

24000 lbs. as 40000 lbs. @ 173c per 100 lbs. 692.00 


Total.$2423.P0 


The second, third, fourth and class A rates are : 
443c, 367J4C, 311c, and 266c respectively. Au¬ 
tomobile Tire Chains, however, are assigned a 
specific commodity rate from Chicago to San 
Francisco of 173c per 100 lbs. in the Trans-Con¬ 
tinental West-bound Tariff, minimum carload 
weight 40,000 lbs. Therefore, the commodity 
rate and minimum carload weight of 40,000 lbs. 
are used. 

The Classification minimum weight for Auto¬ 
mobile Tire Chains is 30,000 lbs. and if the actual 
weight of the Tire Chains was added to the other 








80 


Fundamentals of Transportation 


two fourth class articles, the total weight of the 
three articles would be 53,000 lbs., and if billed 
on this basis charges would be: 

53000 lbs. @ 311c per 100 lbs.$1648.30 

The charges as billed above are: 

4th Class Articles .$933.00 

Commodity Rate Article. 692.00 

Total.$1625.00 1625.00 

Therefore the charge is lower by .$23.30 

If the entire shipment was billed at actual weight 
at the C.L. rate for the highest class article, 
charges would be: 

81000 lbs. @ 311c per 100 lbs.$2519.10 

If these commodities were billed at actual 
weight at the L.C.L. rate it is plainly evident that 
charges would greatly exceed the above amounts. 

Section 4 of this Rule provides an exception 
that, when the aggregate charge upon the entire 
shipment is less on the basis of carload rate and 
minimum C.L. weight for one or more of the 
articles, and on actual weight at L.C.L. rate or 
rates for the other articles, the shipment will be 
charged for accordingly. This section, therefore, 
renders it permissible to load L.C.L. lots of dif¬ 
ferent classes with a C.L. lot under certain con¬ 
ditions without penalizing the C.L. shipment. 

To illustrate the application of Section 1 and 
Section 4, the following examples are given: 










Classification Rules 1 to 13 


81 


Section 1 : 


If a shipment consisted of: 


Linoleum 
Writing Paper 
Brass Nails 


Actual 
Weight 
24000 lbs. 
4000 lbs. 
1000 lbs. 


Rates 

L.C.L. C.L. 

12454c 66c 
12454c 4754c 
94>4c 66c 


Minimum 
C.L.Wt. 
30000 lbs. 
30000 lbs. 
30000 lbs. 


and was forwarded by one shipper in New York 
to one consignee in Chicago, the charges would 
be as follows: 


29000 lbs. as 30000 lbs. @ 66c per 100 lbs.$198.00 

If the aggregate charge on this shipment was 
lower on the basis of the C.L. minimum weight 
for the Linoleum at the C.L. rate and on the basis 
of actual weight at the L.C.L. rates for the other 
articles, that amount would be the charge assessed 
as authorized in Section 4. On this basis charges 
would be as follows: 

Linoleum and Brass Nails are each assigned a 
rating of 4th class in the Classification with a 
minimum weight of 30,000 lbs.; therefore the 
weights of the Linoleum and Brass Nails would 
be combined and shipment would be billed: 

25000 lbs. as 30000 lbs. @ 66c per 100 lbs.$198.00 

4000 lbs. @ 12454c per 100 lbs. 49.80 


Total.$247.80 

It will be observed that the correct charge on this 
shipment is in accordance with the provisions of 
Section 1 because the application of that Section 
makes a lower charge. 






82 


Fundamentals of Transportation 


Section 4: 

If a shipment consisted of: 

Actual Minimum Rating 

Weight C.L.Wt. L.C.L.-C.L. 

C’ed Tomatoes in boxes 32000 lbs. 36000 lbs. 3 5 

B Vg P’der in glass, boxed 2000 lbs. 30000 lbs. 1 3 

Chocolate, boxed 1500 lbs. 30000 lbs. 2 3 

it would be billed thus: 

The 1st, 2nd, 3rd, and 5th class rates, New 
York to Chicago, are 142c, 124^c, 94^c, 
56c, respectively. 

32000 lbs. as 36000 lbs. @ 56^c per 100 lbs.$203.40 

2000 lbs. @ 142c per 100 lbs. 28.40 

1500 lbs. @ 124^c per 100 lbs. 18.68 

Total.$250.48 

If the charges on this shipment were based on the 
provisions of Section 1 they would be as follows: 

The highest C.L. rating is 3rd class, and the 
highest minimum weight is 36,000 lbs., therefore 
the shipment would be billed: 

35500 lbs. as 36000 lbs. @ 94}4c per 100 lbs.$340.20 

It will be observed that the aggregate charge on 
this shipment would be in accordance with the pro¬ 
vision of Section 4 because the application of that 
Section makes a lower charge. 

Rule 11. Weights .—Under this rule, the prin¬ 
ciple is provided that all freight is chargeable at 
gross weights. Usually there are three weights: 
the net, the tare, and the gross; the tare repre¬ 
senting the empty package, barrel, or bag. Of 




Classification Rules 1 to 13 83 

course, where estimated weights are provided in 
the Classification, these take precedence over 
actual weights; and where shipments are for¬ 
warded in carloads the minimum weight is used 
when the actual does not exceed it. 

Rule 12. Classification of Articles Taking Dif¬ 
ferent Classes .— (a) Under this rule, a small lot 
of freight of different classes, packed separately, 
will be taken at actual weight and at the class rate 
for each article, provided the aggregate charge 
for the shipment is less than the minimum for the 
highest classed article. 

(b) Packages containing articles of more than 
one class will be charged for at rates applicable 
on the highest classed article. 

An illustration of the application of section (a) 
of this rule would be as follows: 

If a commodity weighing 40 lbs., rated at first 
class, and another commodity weighing 300 lbs., 
rated at third class, packed in separate containers, 
were shipped to one consignee on the same bill 
of lading, the third class shipment would be 
charged at actual weight and third class rate, while 
the first class shipment would be charged at the 
actual weight and first class rate. That is, if the 
first class rate is $1.50 and the third class rate 
$1.00, the freight bill would read as follows: 


300 lbs. at $1.00.$3.00 

40 lbs. at 1.50.60 


Total 


$3.60 






84 


Fundamentals of Transportation 


An illustration of section (b) of the rule: 

If these two commodities were packed in the 
same container, the first class rating would apply 
to the entire shipment and the bill would be ren¬ 
dered like this: 

340 lbs. at $1.50 per 100 lbs.$5.10 

Rule 13. Minimum Charge .— (a) Under this 
rule, the minimum charge on L.C.L. shipments 
will be 100 pounds at the class or commodity 
rate applicable thereto. On articles classified 
higher than first class, the minimum charge will 
be for 100 pounds at the first class rate. Tariffs 
naming specific rules as to minimum charge will 
take precedence over this rule, but in no case will 
the charge be less than 50 cents. 

(b) When an L.C.L. shipment moves under a 
rate made by a combination of separately estab¬ 
lished rates, whether each component is governed 
by the same or different Classifications; i.e., by 
Official, Southern, or Western Classifications, the 
minimum charge of 50c will apply to the con¬ 
tinuous through movement and not to each of the 
factors. 

(c) The minimum charge for C.L. shipments 
is $15 per car, but this rule does not apply to 
charges for switching service, nor to certain arti¬ 
cles specifically named in the Classification. The 
same provisions that govern L.C.L. shipments 
moving under combination rates apply to C.L. 
shipments, except the minimum charge for a C.L. 
is $15. 



Classification Rules 1 to 13 85 

An illustration of section (a) of this Rule is 
as follows: 

The first class rate, New York to Chicago, is 
142c per 100 lbs. A shipment weighing 60 lbs. 
rated at first class would be billed: 

60 lbs. as 100 lbs. @ 142c per 100 lbs.$1.42 

A shipment weighing 60 lbs. rated at one and 
a half times first class would be billed: 

60 lbs. as 100 lbs. @ 142c per 100 lbs.$1.42 

because \ l / 2 times first class, or $1.28, is less than 
the minimum charge of first class. 

A shipment weighing 60 lbs. rated at 2*4 times 
first class would be billed at actual weight thus: 

60 lbs. at 355c per 100 lbs.$2.13 

because the charge thus determined is greater than 
the minimum of first class. 

A shipment of 60 lbs. rated at 30c per 100 lbs. 
would be billed at the minimum charge thus: 

60 lbs. for 50c 

Under Section (c), a commodity entitled to a 
carload minimum weight of 12,000 lbs. and en¬ 
titled to a rate of 12c per 100 lbs. would be billed: 

12,000 lbs. for.$15.00 

The amount of charges on the basis of the rate 
applicable is $14.40, but the minimum charge for 
a car load will be made. 







Chapter 7 

INTERPRETATION OF CLASSIFICATION 
RULES 14 to 41. 

COLLATERAL READING: In the Consolidated 
Classification—Rules 14 to 41. 

Know the Rules .—This lesson is a continuation 
of the interpretation of the Classification Rules. 
Again we desire to emphasize the importance of 
this particular branch of study; for, having cor¬ 
rect knowledge of these rules, many errors and 
consequent claims will be avoided. Also by 
utilizing this knowledge and complying with the 
Rules, Regulations, and Specifications, the lowest 
classification rating will always be obtained. 

Rule 14. Carload Rates .— (a) This rule pro¬ 
vides that, in order to entitle a shipment delivered 
at the railroad station to the carload rate, it must 
be shipped by one consignor, on one bill of lading; 
the entire shipment must be delivered on the same 
day, and shipped to one consignee, at one des¬ 
tination. However, it must be borne in mind that, 
when carload shipments are loaded by shippers 
on or into cars placed on team tracks or private 
sidings, in accordance with the demurrage rules, 
48 hours are allowed for the completion of the 
loading. 

(b) The minimum carload weight provided is 
the lowest weight on which the carload rating or 
rate will apply. 


87 


88 Fundamentals of Transportation 

Rule 15. Charges for L. C. L. Shipments .— 

(a) This rule provides that the charge for a 
less-than-carload shipment must not exceed the 
charge for a minimum carload of the same freight 
at the carload rate; and, if the car is loaded to 
its full capacity, the charge must not exceed the 
charge for the actual weight as a less-than-carload 
shipment. 

(b) If a shipment offered as less-than-carload 
freight is loaded by carriers and is found to be 
subject to the carload rate, a charge of 2^c per 
100 pounds at actual weight will be made for 
loading, and if the carrier unloads the car, a like 
charge of 2*4c per 100 pounds at actual weight 
will be made, unless carrier’s tariffs provide that 
the cost of loading and unloading is included in 
the carload rate. 

(c) If a shipper loads a car with insufficient 
weight for the car to go forward as a carload 
shipment, and if the carrier forwards the car with¬ 
out loading any other freight therein, the shipper 
will be compelled to pay charges based on the mini¬ 
mum carload weight for the freight thus shipped. 

Rule 17. Articles Not Specifically Provided 
for .—The Classification does not provide for all 
articles of commerce, so under this rule articles 
not specifically provided for, which cannot be cov¬ 
ered by the N.O.I.B.N. (meaning “not otherwise 
indexed by name”) description, may be rated at 
the classification for analogous articles. 


Classification Rules 14 to 41 89 

Rule 18. Combination Articles .—When com¬ 
bination articles, such as a combination Ironing 
Board, etc., are not specifically classified, they will 
be charged at the rating for the highest classed 
article of the combination. 

Rule 19. Knocked Down Articles .—This rule 
provides that, in order to obtain the ratings for 
K.D. articles (meaning “knocked down”) they 
must be taken apart in such a manner as to reduce 
materially the space occupied. 

Rule 20. Parts or Pieces Constituting a Com¬ 
plete Article .—This rule provides that an article 
of several pieces (like an Extension Table, with 
the table leaves in a separate crate), on one bill 
of lading, will be charged at the rating provided 
for the complete article. 

Rule 21. Nested. — (a) Under the term 
“nested,” three or more different sizes of an arti¬ 
cle, for which the nested specification is provided, 
must be enclosed, each smaller within each next 
larger article; or three or more of the articles, 
for which a “nested” specification is provided, 
must be placed one within the other so that each 
upper article will not project above the next lower 
article more than one-third of its height. 

(b) If articles of different name or material 
are nested, whether grouped in one description or 
shown separately, the nested ratings are not ap¬ 
plicable. 

Rule 23. Carloads Delivered to More Than 
One Consignee .—If the owner requests that a 


90 Fundamentals of Transportation 

carload shipment be delivered to more than one 
consignee, a less-than-carload rate will be applied 
on the entire shipment. 

Rule 24. Freight in Excess of Full Carloads .— 
When a shipment, the authorized minimum weight 
for which is 30,000 lbs. or more, is forwarded in 
compliance with Rule 14, each car, except the one 
carrying the excess, must be loaded as heavily 
as loading conditions will permit; and each car so 
loaded will be charged at the actual or estimated 
weight, subject to the established minimum car¬ 
load weight and at the carload rating applicable. 

(a) If the excess over the quantity loaded in 
a closed car is loaded in another closed car, it 
shall be charged at the actual or authorized esti¬ 
mated weight, on the basis of the carload rating 
applicable on the entire shipment. 

(b) If the excess over the quantity loaded on 
an open car is loaded on another open car, it shall 
be charged at the actual or authorized estimated 
weight, on the basis of the carload rating appli¬ 
cable on the entire shipment, subject to a minimum 
charge of 4,000 lbs. at first class rate. 

(c) The freight in excess of full cars must be 
marked as required for less-than-carload freight, 
in accordance with Rule 6. 

(d) Section 7 of this rule contains a number of 
exceptions to the application to the rule and it 
does not apply when specified items in the Clas¬ 
sification provide otherwise; nor is it applicable 
to freight, the authorized recognized minimum 


Classification Rules 14 to 41 


91 


carload weight for which is less than 30,000 lbs.; 
nor on freight, the minimum carload weights for 
which are subject to Rule 34. 

Illustrations are as follows: 

1. A shipment of 40,000 lbs., consisting of 
a commodity entitled to a minimum carload weight 
of 30,000 lbs., is loaded in two cars; 30,000 lbs. 
being loaded in a closed car and 10,000 lbs. being 
loaded in another closed car. The 10,000 lbs. 
would be charged at the actual weight and carload 
rate applicable. 

2. A shipment of 49,000 lbs., consisting of a 
commodity entitled to a carload minimum weight 
of 40,000 lbs., is loaded on two open cars; 41,000 
lbs. being loaded on one open car, and 8,000 on 
another open car. In this illustration we will 
assume the commodity is entitled to the fifth class 
rate and will use the fifth class rate, New York to 
Chicago. The shipment, as described, would be 
billed as follows: 

41,000 lbs. @ 56^c per 100 lbs. $231.65 

8,000 lbs. as 4,000 lbs., 1st class, 

@ $1.42 per 100 lbs. 56.80 

Total $288.45 

If the excess freight at the carload rate amounted 

to more than the minimum charge of 4,000 lbs. 
at first class rate, the excess would be charged for 
on the basis of actual weight at the carload rate. 
For example, if shipment weighed 52,000 lbs. 
and 11,000 lbs. excess was loaded on to the sec- 



92 Fundamentals of Transportation 

ond car, the entire lot would be billed at the car¬ 
load rate, because 

11,000 lbs. @ S6y 2 c per 100 lbs. = $62.15 
and exceeds the minimum charge of $56.80. 

Rule 27. Loading and Unloading Carload 
Freight. — (a) Under this rule, owners are re¬ 
quired to load and unload carload freight, except 
where this is not practicable, as in the case of 
some cities where freight is received over plat¬ 
forms and loaded by the carriers. 

(b) When less-than-carload shipments, on ac¬ 
count of their weight or bulk, cannot be handled 
by regular station employes, or where the car¬ 
riers’ facilities for handling are not sufficient, 
such freight must be loaded or unloaded by the 
owners. 

(c) The carriers’ rules regulating safe loading 
and protection of equipment must be observed. 
Lading must be securely blocked or braced and 
when in enclosed cars must be away from car 
doors. The weight of lading must be approxi¬ 
mately equal on each side of the car. 

(d) When articles are loaded on open cars, 
small detachable parts must be removed and 
placed in wooden boxes or secured with the arti¬ 
cle. Boxes must be encircled at ends with iron 
straps and securely attached to the article or to the 
floor of the car. Such boxes must be specified 
in bill of lading. 

Rule 29. Carload Shipments Requiring Two or 
More Cars. —This rule provides that when a car- 


Classification Rules 14 to 41 93 

load shipment, on account of length of the arti¬ 
cles, requires two or more open cars, the weight 
to be charged for the series is determined as fol¬ 
lows : 

The weight for one car shall be the minimum 
carload weight for the articles constituting the 
shipment, and for each additional car in the series 
that weight shall be increased 24,000 lbs.; actual 
weight to be charged for when it exceeds the 
weight determined, as specified in the foregoing. 
No series may consist of more than four cars. 

Rule 30. Temporary Blocking, etc .—This rule 
provides that temporary blocking, racks, supports, 
dunnage, etc., used to protect and make freight 
secure for shipment, must be furnished and in¬ 
stalled by shipper and at his expense. 

No allowance is made for dunnage, etc., except 
when required for safe transportation of freight 
loaded on open cars. The maximum allowance 
is 500 pounds per car, and in no case will less 
than the established minimum carload weight be 
charged. Shippers must specify on- the shipping 
order the weight of the material used in order to 
secure the weight allowance. 

No weight allowance is made on dunnage, etc., 
used by shippers for part carloads in excess of 
full carloads. 

Rule 31. Refrigeration and Heater Service .— 
This rule provides that carload rates do not in¬ 
clude expense for refrigeration unless otherwise 
provided. Charges for refrigeration and condi- 


94 Fundamentals of Transportation 

tions for furnishing heater service, etc., will be 
found in carriers’ Special Service tariffs. 

Rule 34. Minimum Carload JVeights .—This 
rule provides that, in ordering a car, the shipper 
must specify the dimensions of the car desired. 
If this is not done and freight is loaded in a car 
of greater dimensions than required for the trans¬ 
portation of the particular commodity, the mini¬ 
mum weight for the car used will be charged. 

In the list of commodities, the minimum carload 
weights for many articles are shown as “Subject 
to Rule 34.” This means that the articles are 
entitled to the minimum weight stated, provided 
they are loaded in a car not over 36 feet 6 inches 
in length, or provided the shipper has ordered 
a car not to exceed these dimensions. 

The following is an illustration: 

Hand Cultivators, loose or in packages, are 
entitled to a carload minimum weight of 24,000 
lbs., subject to Rule 34. This means that if the 
shipper ordered a car not over 36 feet 6 inches 
in length, this minimum weight of 24,000 lbs. 
would apply on the shipment, even though the 
carrier furnished a car of greater dimensions. 
If the shipper did not specify that he desired a 
car of dimensions not exceeding 36 feet 6 inches, 
and the carrier furnished a car of greater dimen¬ 
sions, the shipper would be compelled to pay 
charges based on the minimum weight of the car 
furnished. 


Classification Rules 14 to 41 95 

Rule 36. Disposition of Fractions in Comput¬ 
ing Rates .—In computing rates based on a mul¬ 
tiple or proportion of another rate, unless other¬ 
wise provided in a tariff, fractions of less than 
J4 are dropped and fractions of J4 or greater 
are increased to the next whole figure, thereby 
permitting only the use of the fraction y 2 . 

For example: The first class rate, New York 
to Cincinnati, Ohio, is $1.23j4, and \y 2 times 
this rate is $1.85^4; but in accordance with this 
rule the rate assessed would be $1.85 y 2 . 

Rule 37. Switching, Storage, Etc .—The Clas¬ 
sification provides, under this rule, that the rates 
shown in tariffs at points of origin and destina¬ 
tion, as to demurrage, switching, storage and 
other terminal expenses, are applicable to traffic 
moving under the classification. 

Rule 38. Application of Commodity Rates .— 
This rule provides that when a commodity rate 
is established it removes the application of the 
class rates to and from the same points on that 
commodity, except when the tariff provides for 
the alternative use of class and commodity rates 
when one makes a lower charge. 

This rule cannot be interpreted as meaning that 
a carload commodity rate must take precedence 
over a less-than-carload class rate, nor that a 
commodity rate on two articles in straight car¬ 
loads must take precedence over the class rate 
applicable to the two articles in mixed carloads. 
This rule appears to be somewhat ambiguous 


96 Fundamentals of Transportation 

where the minimum weight under the class is less 
than the minimum weight under the commodity 
rate; in other words, if a commodity rate is estab¬ 
lished on an article in quantity of not less than 
50,000 pounds, and the commodity rate is sub¬ 
stantially lower than the class rate, there is a ques¬ 
tion as to whether this obviates the application 
of the class rate on a minimum of, say, 30,000 
lbs. 

Rule 39. Explosives and Dangerous Articles. 
This rule prohibits the shipment of explosives 
and dangerous articles, except under the rules and 
regulations prescribed by the Interstate Commerce 
Commission. 

Rules 40 and 41. Specifications for Containers. 
These rules contain specifications as to the con¬ 
struction of containers, which must be complied 
with in order to obtain the lowest ratings applica¬ 
ble to commodities. A careful study of these 
rules should be made, because the shipper should 
be thoroughly familiar with the requirements and 
specifications contained therein in order that he 
may obtain the lowest classification rating on his 
shipment. A full understanding of not only these 
rules, but of all the rules of the classification is 
one of the most valuable qualifications of a traffic 
manager. 


Chapter 8 

FREIGHT CARS: WEIGHTS AND 
WEIGHING 

COLLATERAL READING: In the Freight Traffic Red 
Book—Traffic Abbreviations; Traffic Glossary; Rules 
Governing Weights and Weighing. 

Section I 

Suiting the Car to the Commodity 

Varieties of Cars .—There are tens of thou¬ 
sands of different commodities transported by 
freight from place to place in our country. The 
great bulk of this freight is carried in the regular 
cars which each railroad has standardized for 
itself; such as, box cars, flat cars, stock cars, and 
coal cars, and other styles of special cars. 

In the early sixties, there developed a need for 
special cars to carry certain kinds of freight. 
The railroads could not, and sometimes would 
not, build these cars; so they we^e built by in¬ 
dividuals or companies for their private use. 
The beef packers, the coal operators, and the oil 
companies soon established their own lines of 
special cars—private cars, as they are called. 
These cars are now known as refrigerator, tank, 
stock, coal, and poultry cars. The varieties of 
cars will undoubtedly be increased as new kinds 
of freight are developed. 

97 


98 


Fundamentals of Transportation 


The Increase in Car Sizes. —All freight is trans¬ 
ported in bulk, in packages, or in special con¬ 
tainers. The weight of shipments in a single car 
has been increased in accordance with the carry¬ 
ing capacity of the car. This increase has been 
very noticeable in the past 45 years. In 1875 
the normal car capacity was 20,000 pounds, but 
now few cars of less than 60,000 pounds capacity 
are used, and many have a capacity of 80,000 
pounds. Steel cars for special coal and ore traf¬ 
fic, with a capacity of 100,000 to 120,000 pounds, 
are also generally used. The size of packages 
carried on or in flat cars has also been increased, 
but the dimensions cannot exceed certain limits set 
by tunnels, bridges, and other physical restric¬ 
tions. 

Railway Equipment Register. —The Official 
Railway Equipment Register is a publication is¬ 
sued by the United States, Canadian and Mexi¬ 
can Railroads, through an authorized agent. It 
is published monthly and shows by car numbers, 
the marked capacity, length, dimensions and cu¬ 
bical capacity of freight cars used to transport 
freight. This tariff shows the various kinds of 
cars of the different railroads and gives also the 
inside measurement, width of doors, both side and 
end, for all box cars. 

How to Order Suitable Cars. —When ordering 
cars shippers should consult the Railway Equip¬ 
ment Register and selection should be governed by 
the nature of the commodity. Certain commodi- 


Freight Cars: Weights and Weighing 99 


ties require protection from heat or cold and are 
forwarded in special cars built for that purpose. 
Other commodities, for the purpose of protec¬ 
tion, are loaded in box cars rendered rain and 
snow proof, and under lock or seal. Some com¬ 
modities are light and bulky and require large 
cars; some are loaded in bulk; some are loaded 
in open cars, because they are not affected by 
weather conditions, or the danger of pilfering, 
or because they are too heavy or are of too great 
dimensions to be loaded in box cars. 

Some articles are of such length as to require 
two or more open cars to transport them. Cars 
used in this way are illustrated on page 100, and 
are defined as follows: 

1. When two cars are used to transport a 
commodity which is too long to be loaded on one 
car, the weight being equally divided between 
them, they are termed “twin” cars. 

2. When a commodity is too long to be loaded 
on one car and requires two or more cars, those 
used are termed a “series.” No series can exceed 
four cars. 

3. Empty cars are frequently used for protec¬ 
tion of a commodity too long to be loaded on 
one or two cars, and are coupled either before or 
after the loaded car, or between two loaded cars. 
The empty cars so used are termed “idlers.” 


100 


Fundamentals of Transportation 



TWIN CARS, SERIES CARS, AND AN IDLER CAR IN SERIES 

SEE PAGE 99, FOR DESCRIPTION 

























































































































































Freight Cars: Weights and Weighing 101 

Section II 

Weights and Weighing 

Definitions of Weights .—There are a number 
of different weight terms used in traffic, the most 
important being as follows: 

Gross Weight: The weight of a car and its 
contents, or the weight of a container and its con¬ 
tents. 

Tare Weight: The weight of an empty car 
or of an empty container. 

Net Weight: The weight of the contents 
of car or container. 

Estimated Weight: The weight prescribed 
in tariffs for commodities shipped in specified con¬ 
tainers or in a specified manner. 

Agreed Weight: The weight prescribed by 
agreement between Carrier and Shipper, for the 
acceptance of commodities shipped in specified 
containers or in a specified manner. 

Minimum Weight: The least weight on 
which carriers will apply a rate or will compute 
the charges. 

Light Weight : The weight of an empty car. 

Weight Capacity: The weight carrying ca¬ 
pacity of a car. 

The Light Weight and Weight Capacity of a 
car are usually stencilled thereon. 

Freight Charges Based on Weight .—Weight 
is usually the basis for computing freight charges 


102 Fundamentals of Transportation 

and is used in accordance with the provisions of 
the tariff. 

Accuracy of weight is as important as accuracy 
of rates. Consequently, it is essential for a ship¬ 
per to be familiar with the rules and practices 
of weighing freight. 

Weighing of Cars .—Carload freight should be 
weighed at the point of shipment, but if scales are 
not available there the weighing should be per¬ 
formed on the nearest scales. The scales on 
which cars are weighed should be tested, and the 
weighing should be done in accordance with the 
rules of the carriers. 

When track scales are used, weighing must be 
done under the supervision of the carriers repre¬ 
sented, or under authorized weight agreements. 

Cars may be weighed at rest or in motion, but 
they should be uncoupled at both ends. When 
twin cars are used, they may be weighed coupled, 
either at rest or in motion, on scales designed for 
this purpose. 

Less-than-carload freight should be weighed 
before shipment, if possible, and the weight noted 
on bill of lading. If shippers have no scales, 
they should endeavor, as far as practicable, to 
have carriers note the weight on bill of lading. 

If tariffs provide for the acceptance of an 
estimated weight for a particular commodity, 
shipped in specified containers or in a specified 
manner, either carload or less-than-carload, 


Freight Cars: Weights and Weighing 103 

weighing is unnecessary, but the estimated weight 
should be shown on bill of lading. 

Re-Weighing .—Carload freight is re-weighed 
when the carrier believes that it is necessary to 
test the accuracy of previous weights. It is also 
re-weighed by request of consignee or consignor 
when doubt exists as to the accuracy of the billed 
weight, subject to charges provided in tariffs; but 
no charge will be assessed by the carrier if the 
ascertained weight shows a discrepancy greater 
than the Tolerance. 

Less-than-carload freight will be re-weighed at 
delivering stations when consignees dispute the 
accuracy of the billed weight, usually without 
charge even though the billed weight is found to 
be correct. 

Tolerance .—The difference in weights, due to 
variation in scales or weighing, which may be 
permitted without correction of the billed weights, 
is called “tolerance.” 

The tolerance is one per cent of the lading, 
with a minimum of 500 pounds, on all carload 
freight, including coal and coke, except that when 
ashes, cinders, clay, gravel, ore, slag, uncut stone, 
etc., and similar bulk freight, brick and soft drain 
tile are loaded in open cars, the tolerance shall 
be one per cent of the lading with a minimum of 
1,000 pounds. 

Tolerance on coal and coke does not include 
difference in weight due to evaporation. The tol- 


104 Fundamentals of Transportation 


erance allowed for this cause is determined and 
published in initial carrier’s tariff. 

Weights of commodities subject to shrinkage 
in weight from their inherent nature, properly 
obtained at point of origin, are not changed, ex¬ 
cept as provided for in the tariffs of the carriers. 

As a rule, all solid carloads of ordinary mer¬ 
chandise, except those containing commodities 
transported at an authorized estimated weight, 
are weighed on track scales by carriers while en 
route, and the ascertained weight is noted either 
on the card waybill or on the regular waybill ac¬ 
companying the cars. On arrival at destination, 
the weights thus noted are checked against the 
billed weights by the delivering agent, and if dif¬ 
ferences exceeding the tolerance are discovered, 
either increasing or reducing billed weights, cor¬ 
rections are issued and charges collected on the 


corrected weights. 

Illustrations of Tolerance .— 

1. Billed weight of a car is.36,900 lbs. 

Ascertained track scale weight. . .37,200 “ 

Difference . 300 lbs. 

No correction would be issued as the difference 
must be 500 pounds or more. 

2. Billed weight of a car is.60,000 lbs. 

Ascertained track scale weight.59,450 “ 

Difference. 550 lbs. 


No correction would be issued as the difference 
is not 1 per cent of the lading. 









Freight Cars: Weights and Weighing 105 


3. Billed weight of a car is.36,900 lbs. 

Ascertained track scale weight.37,450 “ 

Difference. 550 lbs. 


Correction would be issued as the difference 
exceeds the minimum of 500 pounds tolerance. 

Agreed Weight. — When shipments are for¬ 
warded in packages of uniform size and weight, 
arrangements may be made with carriers to ascer¬ 
tain the weight of such packages and subsequently 
the weight thus determined will be accepted and 
applied by the carriers under weight agreement, 
properly supervised. Such weights, however, 
must be designated in the prescribed manner on 
bills of lading or weight certificates, and the prop¬ 
erty will not be re-weighed. Under an arrange¬ 
ment of this nature freight is received by carriers 
and billed at what is termed the “Agreed Weight.” 
A copy of each Weight Agreement must be filed 
with the Interstate Commerce Commission. 

The carriers, however, will frequently check 
the records of shippers for the purpose of verify¬ 
ing the weights and descriptions furnished, and if 
freight is forwarded in carloads, a sufficient num¬ 
ber of cars will be weighed for verification. 

An agreement of this nature is a great aid to 
shippers who forward their freight in containers 
of uniform size, as it facilitates the movement of 
the freight and renders it unnecessary for the car¬ 
riers to weigh such shipments. 






106 Fundamentals of Transportation 

Under this agreement the shipper shall report 
and certify correct gross weights and give correct 
description of commodities in bills of lading. He 
shall also allow the authorized representative of 
the carrier to inspect the original weight sheets 
and records necessary to verify the weights and 
descriptions of the commodities certified in the 
bills of lading. 

If weights of uniform or standard weight arti¬ 
cles are based upon averages, the shipper shall 
give prompt notice to the carrier when any change 
is made in the package which will affect the aver¬ 
age weight. 

Either party to a weight agreement may cancel 
it by ten days’ notice in writing. 

Estimated Weight .—The estimated weight is 
the weight specifically prescribed in tariffs for 
goods shipped in certain packages or in a certain 
manner. 

Minimum Weight .—Carload rates are subject 
to a minimum weight that must be loaded, or 
charge is made therefor. The minimum weight 
for different commodities varies and, in some 
cases, is fixed by the capacity of the car used. 
When a car is ordered, the weight to be shipped 
should be specified, and in the case of bulky goods 
the dimensions of car needed should also be 
stated. 


Chapter 9 

MOVEMENT OF FREIGHT—OUTBOUND 

COLLATERAL READING: In the Freight Traffic Red 
Book—Traffic Glossary; Standard Forms of Shipping 
Papers. 

Section I 

Problems Confronting a Shipper 

Classes of Shippers .—There are three classes 
of shippers : 

1. Shippers of carload freight; the traffic term 
for which is C. L. freight. 

2. Shippers of less than carload freight; called 
L. C. L. freight. 

3. Shippers of both C. L. and L. C. L. freight. 

The method of receiving and delivering freight 
varies in different sections of the country, each 
section having different problems to solve. How¬ 
ever, in no section are the traffic problems so 
intricate and complex as they are in Chicago and 
New York City. Anyone capable of directing the 
traffic through the terminals in these cities will 
be competent to handle traffic in any other section. 
Therefore, many of the illustrations and prob¬ 
lems which we shall use in this course are taken 
from the movement of freight to and from Chi¬ 
cago or New York territory. 

107 


108 Fundamentals of Transportation 

Problems of C. L. Shippers .—Some of the 
problems confronting a C. L. shipper are: 

1. What agency shall he use in getting his 
shipment to destination? 

The answer to that question is determined by 
three factors; namely, 

(a) Nature of the commodity. 

(b) Whether quick transportation is desired 
or not. 

(c) Routing instructions. 

2. What kind of car shall he order? 

The obvious answer is that the car should be 
suitable in every way for the proper transporta¬ 
tion of the commodity. 

3. Shall delivery be made to a station, team 
track, private siding, or lighter? 

In considering this question, the following dif¬ 
ferences in responsibilities are to be noted: 

(a) If shipment is delivered to a station and 
is unloaded from trucks onto a platform, it is 
loaded in the car by carrier. 

(b) If shipment is delivered to a car on a 
team track, private siding, or assigned siding, it is 
loaded in the car by shipper. 

(c) If shipment is delivered to a lighter at a 
lighterage point, it is unloaded from lighter and 
loaded into or on car by carrier. Sometimes, how¬ 
ever, a lighter is loaded by the shipper and an 
allowance per 100 lbs. is made to him, but the 
allowance made must be in accordance with a 
legally published tariff. 


Movement of Freight—Outbound 109 

4. What route shall shipper choose? 

Shipment should be forwarded (a) by the 
route specified by consignee; (b) by the cheapest 
route, if route is not specified in customer’s order; 
(c) by the quickest route, if the commodity is of 
a perishable nature or if it is urgently needed. 

If shipment is destined to a “non-competitive 
point,” there is no choice in selection of route. 

Carload ratings apply only when a carload of 
freight is shipped from one station, in one day, 
by one shipper, for delivery to one consignee at 
one destination and on one bill of lading. 

When freight is loaded in a car placed on team 
track, assigned or private siding, or is delivered 
to a lighter, 48 hours are allowed to accomplish 
loading. At the expiration of this period demur¬ 
rage accrues. 

Shippers should endeavor to impress upon their 
customers, when ordering, to specify delivering 
line and the station at which delivery is desired. 
Failure to do this may result in the shipment being 
consigned to a station located some distance away 
from the consignee’s establishment, and excessive 
cartage charges may be incurred. Shipment 
should be consigned to the delivery station 
nearest to the consignee’s store or warehouse. 

Problems of L. C. L. Shippers .—The prob¬ 
lems confronting an L. C. L. shipper are many 
and in most cases very intricate, some of which 
are as follows: 


110 Fundamentals of Transportation 

Selection of route. 

Best method of forwarding small and large 
shipments. 

Advisability of shipping through a respon¬ 
sible forwarding company in a “Pool” car. 

Forwarding in Package cars. 

The following considerations must be taken 
into account in each of these problems: 

1. Routing: If route is not specified by con¬ 
signee, the shipper should forward via the agency 
publishing the lowest rate. 

2. Method of Forwarding: When forward¬ 
ing a shipment by freight, it is advisable to ship 
in as large quantities as possible, for the purpose 
of reduction of cartage charges, etc. Small ship¬ 
ments may frequently be forwarded at less ex¬ 
pense via express or parcel post. 

3. Forwarding Companies: Frequently L. C. 
L. shippers avail themselves of the services of 
forwarding companies, which consolidate car¬ 
loads of analogous commodities taking the same 
C. L. class rates and forward them to distant 
points, consigned to their representatives or them¬ 
selves, where they are distributed to the respective 
consignees. By this method the rule governing 
carload shipments is complied with and the small 
shipper obtains a rate lower than the regular 
L.C.L. rate. This method of shipment is often 
used by large shippers, having branch depart¬ 
ments in various parts of the country, who for¬ 
ward carloads of various consignments to a 


Movement of Freight—Outbound 111 

distant destination for distribution and for for¬ 
warding from that point to their final destinations, 
thereby effecting a large reduction in the trans¬ 
portation charge. 

4. Package Cars: The “Package Car” service 
in vogue with many railroads is a desirable method 
of forwarding small shipments to distant points. 
It is a service accorded by railroad companies 
whereby on a certain day, or days, of a week they 
load at designated stations cars with less than car¬ 
load shipments destined to certain distant points; 
for example, from New York to St. Louis, or from 
Chicago, Ill., to Denver, Colo. 

The “Package Car” service is appreciated by 
many shippers, because freight goes through to 
destination without transfer; time of movement 
is thus greatly reduced; and liability for loss and 
damage is reduced to a minimum. Frequently the 
carriers furnish a Refrigerator “Package Car” 
service which many shippers use advantageously. 
Industrial traffic men should become familiar with 
this service. 

Some time ago a traffic specialist, who has been 
in business for many years handling import freight 
at the port of New York for western buyers, was 
requested by a large Denver concern to take 
charge of a few small shipments. Being familiar 
with the “Package Car” service, on inquiry he 
found that a certain trunk line was forwarding 
weekly a “Package Car” to Denver, and he thus 
forwarded these shipments. The Denver concern 
had never before heard of this service and was 


112 Fundamentals of Transportation 

greatly surprised to receive these shipments in a 
through car. This company communicated im¬ 
mediately with this traffic man and manifested its 
appreciation of his ability by giving him the con¬ 
tract to handle all of its business which was a 
considerable item. This is only one example of 
how valuable it is to have an intimate knowledge 
of the various kinds of service accorded by rail¬ 
roads. 


Section II 

Details Affecting a Shipment 

A Trip by Freight .—We shall now follow the 
course of an L.C.L. shipment from the time the 
order for it is received, and accompany it to the 
railroad freight station for the purpose of cor¬ 
rect delivery to carrier. We will then meet the 
shipment at destination and follow each step 
necessary for the accomplishment of a correct de¬ 
livery. 

The things which require the close attention of 
the shipper, in getting his goods into the hands 
of the purchaser safely and with least trouble, 
are the following: 

Containers, 

Packing, 

Marking, 

Shipping Papers, 

Preparation of Shipping Papers, 

Charges Prepaid or Collect, 

Straight or Order Consignment, 


Movement of Freight—Outbound 113 

Selection of Route, 

Delivery to Carrier, 

Disposition of Bill of Lading, 

Disposition of Memorandum Bill of Lading. 

Let us look closely into these details of ship¬ 
ping, for they are vital to every shipper. 

Containers .—The lightest possible containers 
consistent with the rules of Classification should 
be selected in order to keep down the freight and 
cartage charges; but containers must be of suffi¬ 
cient strength and security to afford reasonable 
and proper protection to the freight enclosed 
therein. The cause for a large majority of dam¬ 
age claims is the insufficient strength of the con¬ 
tainers. Therefore, while reduction of weight of 
containers is desirable in order to reduce freight 
charges, yet it is far more essential that all arti¬ 
cles should be in such condition and so prepared 
for shipment as to render the transportation 
thereof reasonably safe and practicable. 

In order to secure the lowest Classification 
rating shipment must strictly comply with the 
specifications contained in the Classification rela¬ 
tive to containers, the method of packing, and 
description of articles. When a shipment does 
not comply with the regulations of the Classifica¬ 
tion it is either rejected, or a higher rate is as¬ 
sessed. Therefore, traffic men should thoroughly 
understand the Classification rules and know how 
to interpret correctly the various ratings. 


114 Fundamentals of Transportation 

Packing .—Package and packing specifications 
are based upon extensive tests as well as upon 
experience. 

Commodities taking different rates should not 
be placed in the same package. If they are, the 
rate of the higher class will apply to the entire 
contents, and a wrong description of contents sub¬ 
jects shipper to a heavy penalty. 

Freight inspectors are duly authorized repre¬ 
sentatives of Bureaus established by the various 
transportation companies, and their duties consist 
in verifying shippers’ weights and in seeing that 
shipments are properly described in bills of lading 
and are classified accordingly. They have au¬ 
thority to weigh all shipments offered for trans¬ 
portation, and to open packages in order to 
ascertain whether property is being correctly de¬ 
scribed by consignor. 

Marking .—The name of consignee, address, 
street and number, city or town, county (if there 
are two or more places of the same name in the 
state), and state must be plainly marked or sten¬ 
ciled on each package of L.C.L. freight. It is 
also wise to mark or stencil thereon the name and 
address of shipper, preceded by the word “From.” 
This is of great assistance to both shipper and 
carrier, when shipment goes astray or is un¬ 
claimed. Frequently, the name of shipper is 
marked on the opposite side from that on which 
the consignee’s name appears. 

When a label or a tag is used, it should be 


Movement of Freight—Outbound 115 



CORRECT MARKING FOR A “STRAIGHT’' CONSIGNMENT 










































116 Fundamentals of Transportation 

securely fastened and, in case of pieces or bundles 
of metals, tags should be fastened with wire. 

In case second-hand containers are used, all 
previous shipping marks must be removed. 

A carload shipment need not be marked. 

An example of correct marking for a “straight” 
consignment is to be found on page 115. 

If an L.C.L. shipment is consigned “to order,” 
the words “To Order” or “Order-Notify” must 
invariably be shown on each package, and further 
marked with an identifying symbol or number 
which also must be shown on shipping order and 
bill of lading. 

Example of correct marking for an “Order- 
Notify” consignment is given on page 117. 

When an L.C.L. shipment is consigned for “Ex¬ 
port” the name and address of the broker or agent 
at the port of export may also be shown. 

An example of correct marking for an “Ex¬ 
port” consignment is shown on page 119. 

Shipping Papers .—The Shipping Papers con¬ 
sist of a Bill of Lading, a Memorandum Bill of 
Lading, and a Shipping Order. 

Many shippers have their own printed forms. 
These forms must comply with the rules govern¬ 
ing the uniform bill of lading, and the conditions 
must be printed thereon. 

Preparing Shipping Papers .—Shipping papers 
should show date and point of shipment, name of 
shipper, name of carrier, name of consignee, mail 


Movement of Freight—Outbound 117 



CORRECT MARKING FOR AN “ORDER-NOTIFY” CONSIGNMENT 





















118 Fundamentals of Transportation 

address (not for purpose of delivery), destination, 
state, and county (if there are two or more places 
of the same name in the state), the descrip¬ 
tions of articles should conform to the Classifi¬ 
cation descriptions; indefinite terms must not be 
used, and the shipping papers for L.C.L. ship¬ 
ments must specify the number of packages. 

If freight is weighed, or is contained in uni¬ 
form packages which are accepted by carriers 
at an authorized estimated weight, said weight 
should be marked on case and noted on shipping 
papers. 

Charges Prepaid or Collect. — If freight 
charges are to be prepaid, in the place provided 
therefor in shipping papers should be written or 
stamped the words “To be Prepaid.” If ship¬ 
ment is forwarded with freight charges “To Col¬ 
lect” and the consignor desires to be relieved of 
all liability for said freight charges, he should 
sign the bill of lading in the place designated 
thereon for signature. Every carrier has the 
right to require at time of shipment, prepayment 
or guarantee of all charges. 

Straight or Order Consignments .—If shipment 
is a Straight consignment, use the form for that 
method. If the shipment is an Order-Notify con¬ 
signment, use the blue and the yellow forms, and 
note thereon an identifying symbol or number 
corresponding with that marked on the package. 

A shipment consigned “Order-Notify” must be 
marked with a distinguishing symbol or number; 


Movement of Freight—Outbound 119 



CORRECT MARKING FOR AN "EXPORT” CONSIGNMENT 

























120 Fundamentals of Transportation 

and where shipment consists of more than one 
package, the use of a serial number is recom¬ 
mended. The symbol, number, or numbers must 
also be shown in shipping papers and be identical 
with those marked on package. 

Selection of Route .—If consignees have speci¬ 
fied the routing desired, said routing should be 
noted on the shipping papers; in the absence of 
such instructions, the traffic department should 
note thereon the proper route. However, it is 
not necessary to show routing instructions where 
neither shipper nor receiver has preference; for, 
if routing is not shown, it is the duty of carrier 
to forward via the cheapest reasonable route. 

Delivery to Carrier .—Merchants either own 
their trucks or have contracts with responsible 
drayage companies to perform their cartage serv¬ 
ice. When freight is ready for shipment the dray¬ 
age company is notified, the shipment is loaded on 
truck and hauled to the nearest freight station of 
the carrier. 

It is a practice in large cities for truckmen 
to go to terminals in the A.M. for the incoming 
freight, and ship the outgoing freight in the P.M. 
This is one of the greatest causes of congestion 
at terminals. 

If the traffic manager is responsible for the 
proper operation of the drayage department, a 
large amount of money can be saved by skillful 
and intelligent direction. 


Movement of Freight—Outbound 121 

Disposition of Bill of Lading .—The bill of lad¬ 
ing and the shipping order are handed to the 
truckman when loading the shipment, which is 
hauled by him to the designated carriers station. 
It is delivered to the carrier’s receiving clerk, who 
inspects the package or packages and, if in proper 
shipping order, signs the bill of lading. This 
document is returned by the truckman to shipper. 
If the bill of lading covers a “straight” consign¬ 
ment it should be forwarded to consignee so that 
he may readily identify himself as the owner of 
the consignment and therefore insure prompt 
delivery. 

If the bill of lading covers an “order” con¬ 
signment it should be turned over to the shipper’s 
accounting department and after being properly 
endorsed, draft and invoice should be attached 
thereto. These documents are then delivered to 
the bank in which the shipper has an account for 
forwarding to its correspondent bank at destina¬ 
tion to be delivered to the purchaser against his 
acceptance of the draft. 

An Order consignment will not be delivered 
except on surrender of the bill of lading properly 
endorsed; which means that it should be endorsed 
on the back with the signature of the party to 
whose order it is consigned. Some carriers re¬ 
quire the party taking delivery also to endorse. 

The object of an Order bill of lading is usually 
to enable the shipper to collect for a shipment 
before it is delivered at its destination. This is 


122 Fundamentals of Transportation 

accomplished by sending the original bill of lading 
through the bank, with a draft drawn on the pur¬ 
chaser for the value of the shipment. Upon pay¬ 
ment of draft, the one to whom delivery is to be 
made receives the bill of lading, surrenders it to 
delivering agent, and obtains delivery of the con¬ 
signment. 

Disposition of Memorandum Bill of Lading .— 
The Memorandum bill of lading should be filed 
by shipper as a record of the shipment. If de¬ 
sired, the carrier will sign this document, noting 
thereon the word “Duplicate.” 

The shipment is now in the possession of the 
carrier. We will assume that the destination is 
some large city, and in the next lesson we will 
meet it on arrival and learn how the delivery is 
accomplished. 


Chapter 10 

MOVEMENT OF FREIGHT—INBOUND 

COLLATERAL READING: In the Freight Traffic Red 
Book—Traffic Glossary; Standard Forms. 

Section I 

Preliminaries to Getting Deliveries 
of Freight 

Notice of Arrival .—The shipment discussed in 
the last chapter has now arrived at destination 
and in this chapter we will describe each step nec¬ 
essary to accomplish a correct delivery. 

On arrival of waybill and shipment at destina¬ 
tion, a notice in writing is sent or given to con¬ 
signee by carrier’s agent, or as otherwise agreed 
to in writing by carrier and consignee, within 24 
hours (one day) after arrival. This notice must 
specify the point of shipment, commodity, and 
amount of charges, if any. 

An impression copy of written notice is re¬ 
tained by the carrier. When the address of the 
consignee does not appear on waybill and is not 
known, notice of arrival is deposited in the United 
States mail enclosed in a stamped envelope bear¬ 
ing return address and if it is returned it is pre¬ 
served on file. 

Delivery Requirements .—In order to obtain 
delivery of the goods, consignee will have to pur¬ 
sue the following course: 

123 


124 Fundamentals of Transportation 

1. For a “straight” consignment he must sur¬ 
render arrival notice and original bill of lading to 
carrier, or by other means identify himself as the 
owner of the shipment. 

When a shipment is consigned to “order” ar¬ 
rival notice is sent to the “notify” party named in 
the “order” bill of lading who, on receipt of said 
notice, calls at a designated bank, pays the amount 
of the draft, and obtains the original bill of lad¬ 
ing. The “order” bill of lading, properly en¬ 
dorsed, must be surrendered in order to obtain 
delivery of the freight named thereon. Fre¬ 
quently an “order” bill of lading bears a notation 
to the effect that inspection or sampling is to be 
permitted prior to payment of draft. In such 
cases the bank will usually entrust the bill of lad¬ 
ing to the purchaser for the purpose of exhibit¬ 
ing it to the delivering agent so that this privilege 
may be allowed. If a notation of this kind was 
not made on the bill of lading, the railroad agent 
would not permit inspection or sampling until the 
original bill of lading properly endorsed had been 
surrendered and freight charges paid. 

2. He must pay freight charges to cashier of 
carrier and obtain receipted freight bill. 

3. He must, at the same time, obtain an order 
for delivery of the goods. 

4. He then presents to the delivering clerk the 
order for delivery and after receiving the prop¬ 
erty signs a receipt. 


Movement of Freight—Inbound 125 

Precautions in Signing Freight Receipts .— 
There are several very good reasons why great 
care should be exercised in signing for freight. 
Among these reasons are the following: 

(a) Unless exception is taken as to condition 
of freight and said exception noted on receipt, the 
shipment is receipted for in “Good Order.” How¬ 
ever, a “Good Order” receipt for freight does not 
entirely release carrier from liability, yet it is 
difficult to collect a claim when a “Good Order” 
receipt has been given. The carriers will not per¬ 
mit consignees to make the notation “Recoopered” 
or “Bad Order” on receipts when signing for 
freight that is not in apparent good order but 
will insist that each exception be specifically stated. 
On the other hand, however, the carriers when 
receiving goods for shipment, often insert these 
notations on receipts, but shippers should invari¬ 
ably decline receipts so noted. 

(b) The consignee should be very careful to 
see that every package or piece of freight on the 
bill of lading is delivered by carrier. It fre¬ 
quently occurs, through carelessness, that clean 
receipts are given for freight that is not received 
or is in a damaged condition. Consignee should 
insist that carrier’s delivery clerk make specific no¬ 
tation on delivery receipt, as to shortage of goods 
or condition thereof, before affixing his signature 
to the receipt. In addition, he should endeavor 
to have the delivery clerk also make the same no¬ 
tation on the freight bill. 


126 Fundamentals of Transportation 

(c) Before beginning to take delivery of cars 
covered by bills of lading bearing the notation 
“Shippers’ Load and Count,” car seals should be 
examined to ascertain if they are intact. If they 
have been tampered with, the contents of the cars 
should be carefully tallied and examined. 

Section II 

Procedure in C. L. and L. C. L. Delivery 

Carload Delivery .—There are three kinds of 
deliveries made of C. L. shipments; viz., Station 
delivery, Track delivery and Lighterage delivery. 
The procedure in each case is as follows: 

Station Delivery .—If a station delivery is made, 
freight is unloaded at carrier’s terminal by its 
warehousemen or labor force and is placed to¬ 
gether in one section. These sections are usu¬ 
ally designated by numbers or letters. The notice 
for this delivery usually states that 48 hours (not 
including day of arrival, Sundays, and legal holi¬ 
days) will be allowed for the removal of freight. 
If freight, except automobiles or other self pro¬ 
pelled vehicles (not excepting motorcycles or bi¬ 
cycle motor wheels) is not removed within the 
free time allowed, it is subject to the following 
storage charges per day: 

For each of the first 5 days, lj4c per 100 lbs., 
minimum charge 25c. 

For the sixth day and each succeeding day, 3c 
per 100 lbs., minimum charge 50c. 


Movement of Freight—Inbound 127 

At the expiration of free storage time, the car¬ 
rier is authorized to place shipment in a public 
warehouse at the expense and risk of owner. This 
is the action usually taken, unless the freight is of 
such a nature that the warehouse is unable to 
handle it. The accrued storage, however, is al¬ 
ways added to the extra expense that is incurred. 
When freight is placed in a public warehouse, the 
consignee is promptly notified by carrier of the 
action taken. 

Track Delivery .—If track delivery is to be 
given, the car is placed on a team track and con¬ 
signee is promptly notified; or, if consignee has a 
private siding, the car is placed thereon under his 
instructions. At some stations where the facili¬ 
ties for team track delivery are limited, track 
storage in addition to demurrage, is charged after 
the expiration of free time and the following is 
a form of stamp placed on arrival notice of some 
carriers whose facilities are thus limited: 


IF NOT REMOVED BY.DEMURRAGE AND 

(hour and date) 

TRACK STORAGE CHARGES WILL ACCRUE AS FOLLOWS: 


DAYS.. 

1-DAY 

2-DAY 

3-DAY 

4-DAY 

5-DAY 

DEMURRAGE. 

. $2.00 

$2.00 

$2.00 

$2.00 

$5.00 

TRACK STORAGE ... 

. 1.00 

1.00 

2.00 

2.00 

2.00 

TOTAL. 

. $3.00 

$3.00 

$4.00 

$4.00 

$7.00 


In Computing Time, Sundays and Legal Holidays Are Excluded 


Track storage is a rental charge for the track 
space occupied by a car during the demurrage pe- 







128 Fundamentals of Transportation 

riod, but is applicable only to cars placed on public 
team tracks and the rates charged must be shown 
in a legally published tariff. 

Forty-eight hours (two days) free time are al¬ 
lowed for unloading cars placed on public team 
tracks. On cars held for unloading, time will be 
computed from the first 7 A. M. after placement 
on public delivery tracks and after the day on 
which notice of arrival is sent to consignee. 

Private Sidings. — Many industrial concerns 
have side tracks running into their plants and all 
carload shipments consigned to such plants are 
placed on these side tracks by the carriers. The 
free time for cars so placed is computed from the 
first 7 A. M. after actual placement. 

Lighterage Delivery .—Freight arriving at ter¬ 
minals consigned for lighterage delivery is un¬ 
loaded from cars and loaded on lighters for trans¬ 
portation to destination. On arrival at terminals 
of cars so consigned, notices of arrival are sent 
to consignees. 

When the lighter reports at its destination the 
captain of the boat presents a lighter manifest to 
the consignee who must provide a berth, and 48 
hours from the time lighter reports, Sundays and 
full legal holidays not included, are deemed lay 
days without charge, after which demurrage shall 
accrue against each consignee at the tariff rates 
per day of 24 hours or fraction thereof, Sundays 
and holidays included. 

The demurrage tariff charge on ordinary light¬ 
ers in New York Harbor is $20 per day. When 


Movement of Freight—Inbound 129 

special lighters are used the demurrage charge 
varies according to the capacity of the lighter, and 
it is considerably higher than on ordinary lighters. 

If no berth is provided by consignee on arrival 
of lighter at its destination, or if the lighter is not 
unloaded within the lay days, the property may 
be removed to and stored in a public warehouse 
at the cost of owner and without liability on the 
part of transportation company. Freight thus 
stored is subject to a lien for all lawful charges. 

Less-Than-Carload Delivery . — Delivery of 
L. C. L. freight is usually a station delivery and is 
made from platform or pier. The process is as 
follows: 

1. A notice of arrival is sent out in the same 
manner as for carloads. 

2. On receipt of arrival notice the consignee 
should turn it over to his drayman together with 
bill of lading. He should present these docu¬ 
ments to the cashier located at the terminal of the 
transportation line. If the shipment is “Collect’' 
and consignee is not on the credit list, the drayman 
should pay the freight charges. 

3. The receipted freight bill and an order for 
delivery are then given to drayman, who presents 
it to the carrier’s delivery clerk and obtains the 
freight. 

The instructions relative to signing receipts for 
C. L. freight apply also to L. C. L. shipments. 

When accepting delivery of package freight, if 
a package bears evidence of having been tampered 


130 Fundamentals of Transportation 

with, it should be opened and only actual con¬ 
tents signed for. If a package appears to be light 
in weight, because of either leakage or sifting, it 
should be weighed, and only the actual weight 
signed for. 

Section III 

Liquidating Freight Bills 

Carriers’ Credit List .—Formerly the carriers 
allowed credit to shippers and receivers, and had 
in effect what they termed the “Authorized Ac¬ 
commodation List.” The names of the shippers 
and receivers appearing on this list were accorded 
daily, weekly, or monthly credit as respectively 
authorized. 

That practice, however, has been abolished and 
now credit is extended for a period not to exceed 
96 hours. To obtain this credit, application must 
be made to carriers in compliance with their in¬ 
dividual rules. 

Many of the carriers by railroad require that 
an application for credit must be sent to the car¬ 
rier’s treasurer; and that there must be given, as 
references, two commercial houses and one bank. 

For large shippers and receivers this accom¬ 
modation is a great convenience and quite an 
economical factor, as it aids prompt shipment and 
avoids considerable delay in obtaining delivery. 
It is also a convenience to the carrier. 

Auditing Freight Bills .—Every shipper and re¬ 
ceiver should have their freight bills audited for 


Movement of Freight—Inbound 131 

the purpose of verification of WEIGHT, RATE, 
and TOTAL CHARGES. 

Merchants, as a rule, pay very little attention 
to the charges shown on freight bills. Some do 
check the bills as to correctness of calculation, but 
very few check for the purpose of ascertaining if 
the goods are properly classified and if the rate 
is correct. 

In an interview with the senior member of a 
well known firm, engaged in an almost entirely 
interstate business amounting to several million 
dollars per year, he was asked if he knew whether 
the freight bills paid by him were correct or not. 
He replied that he did not know, but assumed that 
they were. 

The freight charges paid by this firm amount 
to many thousands of dollars each year. It is only 
reasonable to assume that many errors have oc¬ 
curred in its freight bills, and that a large sum of 
money could have been saved if they had been 
audited. 

When the railroads were turned back to the 
owners by the Federal Government, after the 
Great War, many clerks were discharged. Some 
of these—rate clerks—knowing the value of au¬ 
diting bills, presented propositions to some mer¬ 
chants in which they agreed to audit their bills on 
a basis of being paid one-half the amount which 
they might recover. Shortly afterwards, one of 
these young clerks, as the result of auditing, went 
into the office of one of the large trunk lines and 


132 Fundamentals of Transportation 

presented 53 claims for over-charge in one day. 
Shippers and merchants should be ashamed of 
their method of conducting business, when it is 
necessary to resort to this means of straightening 
out their traffic matters. There are men who adver¬ 
tise as claim agents or claim bureaus, and make a 
business of auditing freight bills, collecting claims 
on a commission basis. Refunds aggregating a 
very large amount have been obtained through 
claims for overcharge caused by incorrect routing 
or improper Classification rating. The employ¬ 
ment by shippers of competent traffic men and the 
establishment of traffic departments would be not 
only a protection from loss, but a profitable invest¬ 
ment, and would render unnecessary the employ¬ 
ment of the service described above. 

In auditing freight bills, honesty of purpose 
should be demonstrated and, if undercharges are 
discovered, payment should be made to the inter¬ 
ested carrier. If this method is employed the 
traffic men will experience no difficulty in collect¬ 
ing just claims and most cordial relations will be 
maintained with the carriers. 

Again let us emphasize the fact that one skill¬ 
ful traffic man may constitute an efficient traffic 
department and the foregoing paragraphs demon¬ 
strate clearly that a traffic department is a neces¬ 
sary adjunct to every industry engaged in com¬ 
merce. 

JVeighing Freight .—One of the expert traffic 
managers of New York City, employed by the 


Movement of Freight—Inbound 133 

largest concern in its particular industry, having 
branches in almost every large city in the United 
States, has given a practical demonstration of 
the efficiency of his department. One of the 
plans inaugurated by him was to install scales in 
each store and to require the manager to weigh 
every package of L.C.L. freight as soon as it is 
received from the railroad as well as all packages 
received from the express companies, because 
many errors were made in weight. For instance, 
a package may weigh 95 lbs., but through care¬ 
lessness might be billed as 195 lbs. During one 
month, in one district only, the plan of this traffic 
manager resulted in a saving of $625. His con¬ 
servative opinion was that, in one year, the sav¬ 
ings thus made in all their districts would amount 
to over $40,000. His forecast was justified; for, 
at the end of the year, the president of this large 
company wrote a letter to the traffic manager 
stating that the saving by his plan had amounted 
to nearly $50,000. 

He has adopted a further plan of weighing the 
empty containers of freight received, for the pur¬ 
pose of ascertaining if the containers being used 
are too heavy. If so, he issues specific instruc¬ 
tions to shippers to use containers of the right 
weight. 



Chapter 11 

SHIPPING AND RECEIVING 
DEPARTMENTS 

COLLATERAL READING: In the Consolidated Clas¬ 
sification-Rules of the Classification. 

Section 1 

Shipping Department Practice 

Procedure With Outgoing Shipments .—A traf¬ 
fic manager’s job is by no means confined to a 
knowledge of classifications, rates, and routes. 
His job extends into the minute details of his ship¬ 
ping department and into the shipping depart¬ 
ments of the concerns from which his company 
buys goods. While he is the head of his own 
shipping department, he is also the head of the 
receiving department. Since incoming freight 
must be properly routed and packed, the traffic 
manager is vitally concerned with the purchasing 
and receiving departments. 

Traffic departments may differ in methods of 
organization, but there are certain practices ap¬ 
plicable to all shipping departments, which have 
been found to be sound and profitable. These 
practices and procedures should obtain in every 
shipping department. Let us see what they are. 

Packing the Goods Properly .—The proper 
packing of goods for shipment is an obligation 
which the company owes not only to itself, but to 
135 


136 Fundamentals of Transportation 

its customers. It stands to reason that goods 
should be packed in such a manner as will protect 
them from the wear and tear of transportation. 
Proper packing is also a form of insurance to 
which the consignee is entitled. It is the traffic 
manager’s job to devise, or have some one devise, 
the very best form of packing suitable for the 
goods. 

Among the things which must be taken into 
consideration in devising containers are strength 
and weight of the material, and bulk. Fiber con¬ 
tainers, for example, are now used instead of 
wooden boxes for many commodities. They cost, 
usually, about 50 per cent less than wooden boxes 
and they reduce freight bills. They thus effect 
a saving to the shipper and to the buyer both. As 
an illustration of this fact, the traffic manager of 
one of our largest, nationally known concerns de¬ 
cided to change from wood to fiber containers for 
several of their commodities. The saving thereby 
in freight cost alone amounted to over $26,000 
during one calendar year. 

Marking: Put Right Marks on the Package .— 
Each package in an L.C.L. shipment should be 
properly and legibly marked with brush or stencil, 
showing the name of consignee, street address, 
city or town, county (if there are two or more 
places of the same name in the state), state, and 
the station shown on shipping directions. 

Every package of L.C.L. freight should be 
marked exactly as consigned in the bill of lading. 


Shipping and Receiving Departments 137 

It is advisable to mark packages with a symbol 
or number for the purpose of identification. The 
order number seems to be the only absolutely re¬ 
liable means of identifying “astray” and “over” 
packages, and should always be used. Where 
several packages constitute a shipment, the order 
number should be shown and each package should 
bear a serial number. A symbol or number must 
be marked on all L.C.L. packages consigned “To 
Order.” As the Order bill of lading is a nego¬ 
tiable document, it is necessary that the identical 
marks shown on the packages which it covers must 
be shown also in the bill of lading, in order that 
there may be no error in delivery. 

While transportation companies require their 
agents to compare the shipping receipt with the 
marks on packages, and to call upon the shipper 
for correction if a discrepancy between the two is 
found, this does not relieve the shipper of the 
responsibility of marking packages in accordance 
with the shipping receipt. Inasmuch as improper 
marking is directly responsible for the majority 
of “astray” packages, careful attention should be 
given to having packages marked exactly right. 

Railroad companies do not require marks on 
packages shipped in carloads; but each package of 
a carload shipment, which is transported by a 
boat line for part of its journey, should bear dis¬ 
tinguishing marks, so that it may be identified in 
case of separation from the remainder of the ship¬ 
ment. These special marks should also be shown 
in the bills of lading. 


138 Fundamentals of Transportation 

Weight Should Go on the Package .—Where 
L. C. L. shipments are not forwarded at an au¬ 
thorized estimated weight, they should be weighed. 
The weight thus ascertained, or the estimated 
weight, should be marked on packages and shown 
in bill of lading. 

Address on the Bill of Lading .—The bill of 
lading should show the name and address of con¬ 
signee, and both this address and all marks in 
the bill of lading should be identical with the 
marking on the package or packages which the 
bill of lading covers. 

Description of Articles in Bill of Lading .— 
When there is a question as to the proper descrip¬ 
tion of shipments, which, on account of their un¬ 
usual character, are apt to be improperly classified 
by transportation lines, it should be brought to 
the attention of the traffic manager. 

Packages containing premium articles taking 
higher rates than the goods with which they are 
shipped, are subject to higher rates than would 
apply if the premium articles were not included. 
Questions of this kind should be referred to the 
traffic manager, for advice as to description in 
bills of lading, rates, etc. 

Many articles are frequently improperly classi¬ 
fied by transportation companies, on account of 
erroneous description in bills of lading. By ob¬ 
serving proper forms of description, as illustrated 
below, over-charges and claims will be avoided. 


Shipping and Receiving Departments 139 


ARTICLE 

Advertising matter, 
printed. 

Advertising matter, not 
printed. 

Boxes, wooden, set up. 

Boxes, wooden, knocked 
down. 

Boxes, paper, set up. 

Boxes, paper, knocked 
down. 


PROPER DESCRIPTION 
Printed advertising matter. 

Advertising matter. 

Common wooden boxes. 
Box shooks. 

Paper boxes, S. U. 

Paper boxes, K. D. flat. 


(See complete list in Consolidated Classification) 


Packing List .—In Export Trade it is the cus¬ 
tom to make out a packing list in triplicate show¬ 
ing the exact contents of each package. One 
copy is placed inside of the package, one copy is 
sent to the consignee and one copy is retained by 
shipper for his file. The packing list should be 
signed by the employee who packs the goods. 

If the packing list were used in domestic trade, 
many claims would be avoided and claims for 
“concealed loss” could usually be collected with¬ 
out controversy. Particularly a packing list 
would be desirable for such shipments as shoes, 
hats, hosiery, dry goods, and similar commodities 
which are liable to pilfering in transit. 


Specify the Routing .—When the routing is 
specified by the purchaser and is shown on order 
slip, said routing should be complied with after 
being verified by the traffic department. It is a 
frequent occurrence for purchasers to request 




140 Fundamentals of Transportation 

their shipments forwarded via routes other than 
the cheapest route and if the routing requested is 
reasonable it should be respected. When doubt 
exists concerning the reasonableness of routing 
thus shown, the Traffic Manager should be con¬ 
sulted. The routing and terminal delivery de¬ 
sired should always be noted on the bill of lading. 

When C.L. Rate Applies .—The charge for a 
small quantity of freight must not exceed that 
for a greater quantity of like kind; i.e. the charge 
for a less-than-carload shipment must not exceed 
the charge for a minimum carload of the same 
freight at the carload rate. Inasmuch, however, 
as owners are, as a rule, required to load and un¬ 
load all freight carried at carload rates, whether 
handled on sidings or in yards, a charge will 
usually be made for loading if the carload rate 
is claimed on a shipment made as a less-than-car- 
load, but not loaded and unloaded by owner. 

Increased Minima for Long Cars .—When 
merchandise, subject to Rule 34 of the Con¬ 
solidated Freight Classification, is loaded in or 
on cars 36 l / 2 ft. or less in length, it is subject to 
established minimum carload weights; these 
weights vary for different commodities. The 
minimum weight for articles subject to this Rule 
is increased in proportion as car lengths exceed 
36y 2 ft. 

The carrier is not always in a position to supply 
at short notice cars of the exact length desired 
by a shipper. Therefore, when a shipper orders 


Shipping and Receiving Departments 141 

a car of length to suit any particular shipment 
and, for its own convenience, the carrier supplies 
a car of greater length than was ordered, the 
minimum weight for the car ordered shall govern. 

Delivery to Carrier .—When deliveries are 
made to freight stations by truck, they should be 
made in sufficient time to enable freight agents 
to forward goods on the same day. 

When freight is ready for shipment, it should 
be turned over to the authorized drayman and 
receipt obtained therefor. This receipt should 
be held for the purpose of checking and insuring 
return of the carrier’s receipt. 

Care should be exercised to avoid forwarding 
two or more shipments, covered by separate bills 
of lading, to one consignee on the same day. 
Whenever possible, consignments should be con¬ 
solidated. 

Shipping receipts with the notation “Wet” or 
“Received in the Rain” should not be accepted. 
If receipts are given with such unusual notation as 
“Subject to Delay Account of Embargo,” etc., the 
fact should be brought to the attention of the 
traffic department. 

Receipts bearing the notation “Shipper’s Load 
and Count” should not be accepted except in cases 
of carload shipments which, on account of their 
nature, cannot be counted by carrier’s agents. 
Whenever it is necessary to accept bills of lading 
with a “Shipper’s Load and Count” notation, 
especial care should be taken in the matter of car 


142 Fundamentals of Transportation 

seal records, and shippers should be in a position 
to make affidavits as to contents of car in case of 
loss. In the absence of such records, a claim for 
shortage may be uncollectable. 

Under a strict interpretation of most switching 
and ferry car tariffs, carriers are not responsible 
for contents of cars loaded on private or assigned 
sidings, until after they have been removed from 
sidings. Upon delivery, therefore, of carload 
shipments on private siding and until cars are 
switched, they should be protected by a watch¬ 
man even though goods have been receipted for. 

Prior to loading a carload shipment, the car 
should be thoroughly examined. Cars with leaky 
roofs and those which have been rendered unfit 
for use on account of having been recently loaded 
with some offensive material, should not be ac¬ 
cepted from railroad companies except under 
written protest. 

Disposition of Bill of Lading .—The bill of 
lading is evidence of shipment and should be care¬ 
fully handled. The original bill of lading for a 
Straight consignment should always be enclosed 
to the consignee with invoice for the value of the 
goods, and the Memorandum bill of lading should 
be filed by the shipping department for record 
purposes. 

Classification Sheet .—The shipping department 
should be furnished with a classification sheet, 
showing the classification ratings of the particular 
commodities handled by that department. 


Shipping and Receiving Departments 143 

Tabulating Freight Rates .—The shipping clerk 
should be quite familiar with the rates via the 
standard freight lines and differential routes over 
which shipments are forwarded to and from his 
concern. A form similar to the illustration shown 
on page 144 should be prepared and he should 
tabulate the rates applicable to his commodities 
used for his outbound and inbound freight. This 
tabulation will aid the shipping clerk to check up 
freight bills quickly and exactly, and may result 
in considerable saving in transportation charges. 

Section II 

Purchasing Department Practice 

Procedure With Incoming Freight. — The 
traffic manager is not the head of the purchasing 
department, but the purchasing agent and the 
traffic manager should cooperate and keep in 
closest touch with each other. The latter is, be¬ 
cause of his knowledge, in a better position to 
route incoming freight than is the former, who 
is an expert in purchasing goods, not in routing 
them. The purchasing agent should, therefore, 
specify in his orders the delivery desired by the 
traffic department. 

Notices of arrival of merchandise should be 
turned over promptly to a drayman who is to get 
the goods from carrier. If freight should be 
consigned to a definite station and carrier offers 
delivery at some other station, report should im¬ 
mediately be made to the traffic manager. 


FREIGHT RATES FROM NEW YORK 
Rates in cents per 100 pounds, Sept. 1, 1924 


144 Fundamentals of Transportation 


co 

co 

c5 

i—l 

o 

Dif¬ 

feren¬ 

tial 

62 

00 

CO 

61 

71 

73 

P 

i 


r-t|N 




P 

£ r 

CO 

CV2 

o 

o 

r- 

1 ^ 

£ 

CO 

z> 

p 

p 

o 


co 







i 

I £ i—1 



Hcvj 


•—i|c\2 

CO 

c l—l CD o3 

oo 

00 

LO 

rH 


CO 

•rH £ tH 

00 

p 

00 

o 

o 

ct3 

P CD P 




i — 1 

1—1 

i—1 

P 






o 

1 







P . 

•—'|c\2 




Hcvi 

p 

£ V 



P 

p 

O 

CO 

£ b 

p 

o 

02 

02 

rH 


j ^ Cu 


i—1 

1-1 

rH 

i—1 


CO 






CO 

1 

1 £ 1-1 

rH|C\J 


»— *|c\2 


•— »|c\2 

CO 

P cd a3 

CO 

p 

CO 

co 

z> 

0(3 

•H £ *H 

H 

02 

1—1 

CO 

CO 


P CD P 

1-1 

1—1 

1—1 

I-1 

1—1 

o 

P 






P 

1 

P -H 

r-l|C\J 


rn|c\2 

r-l|cvj 

<-h|c\j 

£ 

£ R 


z> 

p 

P 

LO 

02 


02 

CO 

co 

CO 



,p OD 

1—1 

1-1 

1—1 

rH 

1—1 


CO 







1 

1 £ i—1 




rn|c\2 


CO 

P CD cc3 

02 

CO 

p 

CO 

CO 

CO 

•H £ -H 

CO 


02 

LO 

LO 

oj 

P CD P 

1-1 

1-1 

1-1 

1—1 

r—I 

1—1 

P 






o 

| 






p 

gp 

C\2 

CO 

LO 

LO 

CO 

_J 

03 S 


LO 

P 

P 

CO 


4_D ^ 

rH 

1—1 

1-1 

1-1 

1-1 


CO 











CO 







•rH 







1—1 

CO 






o 

•rl 



O 



Ph 

£ 



bD 

c6 

P 

ct3 

o 



ct3 

•H 

P 

CD 

p 



o 

£ 

£ 

£ 




•H 

o 

rH 

£ 

• 

O 


p 

CD 

£ 

•rH 

p 

EH 


o 

p 

P 

a 

co 


FOR EXPLANATION, SEE PAGE 143 






















Shipping and Receiving Departments 145 

Delivery of a carload shipment on a public 
track or siding is not accomplished until the con¬ 
signee or his agent has been notified of the plac¬ 
ing of car and he breaks the seals on the car. 

Signing for Shipments .—The truckman should 
be instructed, when signing for a shipment, to 
sign the name of the trucking company and his 
own name in full on the freight receipt. 

Examining Packages and Containers .—Care 
should be exercised to see that the truckman, or 
the party receiving the goods, thoroughly ex¬ 
amines them and assures himself that all packages 
called for on the bill of lading are received and 
whether or not they are in good condition. Be¬ 
fore opening a container it should be carefully 
examined. 

Weighing Inbound Shipments .—All incoming 
L. C. L. freight shipments should be weighed 
(when possible) immediately upon receipt. In in¬ 
stances where there is a difference between the 
actual weight and the weight shown on freight 
bill, the carrier should be requested to make cor¬ 
rection to the proper weight. Failing to have the 
correction made, the matter should be reported at 
once to the traffic manager. The weight as shown 
on the bill of lading should be compared with the 
scale weight, and where shippers do not show 
correct weight in their bills of lading or do not 
show any weight, report should be made to the 
traffic manager, giving date shipment was re¬ 
ceived, correct weight, contents, name of shipper, 


146 Fundamentals of Transportation 

and name of carrier issuing bill of lading and its 
date. 

Record of Shipments Received .—The shipping 
clerk should enter all shipments received and keep 
complete record thereof, as provided in a Freight 
and Express Entry Record, furnished by the traf¬ 
fic department. 

Shipments Put in Storage hy the Carrier .— 
Report should be made to the traffic manager 
concerning all shipments which are placed in a 
public warehouse by the carrier, because they were 
not removed within the free storage limit. When 
shipments are placed in a public warehouse by the 
carrier, on account of not being removed within 
the free storage limit, a full investigation as to 
the cause of such action by the carrier should be 
made and a full report should be sent to the 
traffic manager. 

Checking Freight Bills. — The freight bills 
should, as soon as received, be turned over to the 
rate clerk for the purpose of checking the rates, 
calculations, and classification. 

Accepting Delivery of Short Shipments .— 
Truckmen should be instructed, when taking de¬ 
livery on a shipment which is not complete, to 
give receipt for the actual number of packages 
received and, if possible, to have the agent make 
and sign a notation on the face of the freight 
bill as to the number or quantity short and un- 


Shipping and Receiving Departments 147 

delivered. If the short freight is not delivered 

within thirty days, claim should be filed. 

\ 

Tracing Delayed Shipments. — Invoices and 
bills of lading should be checked every 10 days. 
When shipments are 15 days overdue, the agent 
of the delivering carrier should be requested to 
start a tracer. 

Inbound Carload Shipments .—On receiving 
freight from solid cars, the car doors should be 
examined (both end and side doors) before seals 
are broken, in order to be sure that the seals have 
not been tampered with. The number of each 
seal should also be taken. 








Chapter 12 

DRAYAGE 

Section I 

Development .—From primeval time methods 
for conveying merchandise have been devised and 
the stages of progression from the man who 
carried a bundle on his head or back have been 
briefly as follows: 

The pack horse, 

The ox-cart, 

The wagon, 

The horse-drawn truck, and 

The giant horse-drawn swing, baby and reach 
trucks capable of carrying single loads of from 
ten to a hundred tons, or even any weight that 
the pavements could sustain. 

Finally, we have reached the stage of the 
modern motor truck that has half the weight 
carrying capacity of a standard freight car. 

Motor Truck Displacing Less-Than-Carload 
Freight Trains .—Highway improvement and 
terminal costs are making it possible in many in¬ 
stances economically to utilize motor trucks to 
replace or to continue the rail movement of 
freight. Hundreds of miles of local freight ser¬ 
vice formerly maintained with railroad cars has 
been susperseded by the use of motor trucks and 
those in control of our largest railroads are at 
149 


150 Fundamentals of Transportation 

the moment definitely committed to the develop¬ 
ment of this policy to the end that short hauls 
of freight which are unprofitable to the railroads 
will at their instigation be superseded by motor 
truck service. In addition to this there are, of 
course, the long-haul motor transportation com¬ 
panies which to a degree compete with the rail¬ 
roads and the merchants who truck between their 
factories and markets. 

Economy of Motor Truck Service .—There is 
no question that the motor truck is an economical 
factor in transportation, but motor trucking at 
present is not organized on a systematic basis. 
It is keenly competitive and, on account of this 
fact, motor truck companies operate largely on a 
contract basis at fluctuating rates. Stability of 
service and rates would add greatly to the value 
of this agency of transportation. 

Under the usual method of handling L. C. L. 
shipments by rail, at least six handlings are neces¬ 
sary; namely,— 

(1) Loaded on the shipper’s truck and hauled 
to the freight station. 

(2) Unloaded at the railroad station plat¬ 
form. 

(3) Loaded into a freight car. 

(4) Unloaded at railroad station at destina¬ 
tion. 

(5) Loaded on the consignee’s truck. 

(6) Unloaded at the store door or warehouse 
of consignee. 


Drayage 


151 


If shipments are transferred en route, two or 
more handlings are required. If the shipments 
are transported entirely by motor trucks, only 
two handlings are required; viz., loaded on the 
truck at shipper’s establishment and unloaded 
from truck at store door or warehouse of con¬ 
signee. 

When consideration is given to the fact that 
labor is becoming an increasingly heavy factor in 
transportation costs, the possible economies by 
handling short-haul L. C. L. shipments by motor 
truck are readily observed. 

Long Distance Trucking. — Highways and 
volume of freight permitting it is usually practi¬ 
cable to truck within a radius of fifty miles and, 
of course, under exceptional conditions for longer 
distances. Aside from expediting the movement 
of freight between points of origin and delivery 
by the use of motor trucks the following elements 
are to be considered in comparing the cost of 
motor truck transportation with that by rail. 

Packing .—If goods are moved between point 
of origin and consignee in the same vehicle, a 
considerable saving may be accomplished in pack¬ 
ing and marking over the need for packing to 
withstand several handlings which might make 
marks illegible. 

Storage .—If within motor trucking distance 
of market goods may be stocked or stored at 
factory for less than it would cost to store them 


152 Fundamentals of Transportation 

at the point where sold and they would be avail¬ 
able almost as quickly. 

Trucking to Freight Station .—Lacking a rail¬ 
road siding goods would have to be trucked to 
railroad station. 

Freight Charges .—This fact should be con¬ 
sidered: When shipping by rail or water it is 
required that many articles be packed in boxes or 
crates, and freight charges on the articles are 
increased by the weight of these containers. But 
when shipping direct by motor trucks, it is fre¬ 
quently possible to eliminate cases or crates in 
the packing of merchandise and thereby the trans¬ 
portation charges are reduced, in addition to the 
saving of cost of containers. 

Trucking Charge .—There will, of course, be 
the charge for trucking from depot to consignee. 

To the above may be added the consideration 
of deterioration of goods through successive 
handlings, the likelihood of actual damage, pilfer¬ 
age or loss as well as the need for contracting 
with two or more transportation agencies if goods 
are shipped by freight. 

Local Trucking 

Choice of Equipment .—In considering the 
problem of local trucking, selection of motive 
power may be made from three types of vehicle; 
viz., horse-drawn, electric and gasoline, and their 
relative operating cost per unit is in the order 


Drayage 


153 


named, the horse-drawn being the least expensive 
and the gasoline truck the most expensive. 

The dependable maximum radius of each is: 


Horse truck .15 miles per day 

Electric truck.30 miles per day 

Gasoline truck ....over 30 miles per day 


The range of the heavy duty electric truck may 
be increased by installing a larger battery, by 
boosting or by replacing batteries during the day, 
while in the lighter electric trucks, a greater 
radius is standard. On the other hand, if operat¬ 
ed over hills, on heavy roads or if overloaded the 
efficient mileage of the electric will be reduced. 

Manner of Procuring Equipment .—Trucking 
may be done by the purchase and operation of 
trucks by the merchant, if his business is sufficient¬ 
ly large to warrant it; by the hire of trucks on a 
daily, weekly, or yearly basis from a public truck¬ 
man, or by the employment of a public truckman 
paying a rate agreed upon for each package or 
hundredweight. In some instances, a combina¬ 
tion of these arrangements may be worked out 
to good advantage, as for example owning or con¬ 
tracting for trucks up to an assured minimum re¬ 
quirement and having additional work by a public 
truckman through hiring trucks on a daily basis, 
or at a price per hundredweight or package. 

In reaching a decision with regard to the above, 
it is well to remember the old adage “every man 
to his trade.” The handling of labor, the load¬ 
ing of trucks, maintaining a surplus of equipment 




154 Fundamentals of Transportation 

to replace that which is out of use for repair and 
painting, the taking care of trucks so that they 
do not break down on the road and the taking 
care of them when they do, as well as the pur¬ 
chase of accessories, care of tires and the main¬ 
tenance of an operating organization are all a 
part of the day’s work in the routine of a re¬ 
sponsible public truckman. If you are not pre¬ 
pared to assume this detail, it is probable that you 
can afford to pay a profit to a public truckman to 
do your work and have it done for less than it 
would cost to do it yourself. 

Costs vary so greatly according to local con¬ 
ditions and methods of operators, that no at¬ 
tempt is made to give cost figures, as the pre¬ 
vailing rates in any locality may easily be 
ascertained. 

Elements of cost .—The following enter into 
the cost of truck operation and to a degree, de¬ 
pending upon locality, have to be reckoned with. 

Licenses .—State licenses have to be obtained, 
the cost depending upon the rate fixed by the laws 
of the state. A chauffeur must be hired for motor 
truck operation. 

City .—In most cities a Public Cart License 
must be obtained. 

Custom House .—If freight in bond is to be 
trucked, a custom house license must be procured 
in connection with which a security bond is re¬ 
quired to guarantee against the loss in transit of 


Drayage 


155 


bonded goods. The words “Custom House 
License No.” must be painted on each truck used 
for freight in bond. 

Insurance .—Accident Liability and Property 
Damage—No cost of truck operation may be 
accurately estimated without the liability for 
personal injury and for property damage being 
definitely determined by the payment of insurance 
premiums to cover those contingencies. In these 
days of high awards in suits for personal injury 
it is well to insure in amounts ample to cover any 
judgment that may be obtained, particularly in 
view of the fact that insurance in excess of mini¬ 
mum amount may be had at a relatively low cost. 

Collision .—Whether or not collision insurance, 
which assures payment for damage to your vehicle 
by another or by contact with obstacles, should be 
carried by you, is for you to determine by con¬ 
trasting the likelihood of sustaining damage and 
of securing payment for such damage from one 
with whom your vehicle collides against the cost 
of collision insurance. 

Fire .—Both the truck and goods on truck 
should be insured against loss by fire while on the 
road or in a garage or stable. 

Workmen’s Compensation .—Most states re¬ 
quire that workmen’s compensation insurance be 
carried by employers to protect employees in the 
event of injury while at work. The rate for this 
insurance varies according to the industry in which 


156 Fundamentals of Transportation 

the man is employed, for example, the rate for the 
trucking industry may be 5% and for bridge work¬ 
ers 8%. These rates in turn are subject to varia¬ 
tion dependent upon the experience of the indi¬ 
vidual employer, so that one may have to pay 
more than the rate fixed for his industry if in¬ 
juries to his employees are over costly, or if the 
cost is low his rate may be bettered. 

In connection with the placing of compensation 
insurance, it is well to remember that payment for 
the accident of today may extend over a period of 
years to come. Therefore, care should be exer¬ 
cised in the selection of the insurance company, 
for if it fails to meet awards, you must pay. 

If you hire a truck from another and he fails 
to comply with the law that requires him to carry 
Workmen’s Compensation Insurance and his man 
on the truck employed by you is injured, you are 
responsible for any workmen’s compensation 
award in the event that his employer does not pay. 
Therefore, it is incumbent upon you to see that 
the man who does your trucking carries Work¬ 
men’s Compensation Insurance. 

In New York State the law provides that if a 
minor is improperly employed and is injured in 
such employment, he is awarded double compensa¬ 
tion, of which the insurance company may not pay 
more than one half—the balance to be paid by 
the employer. Therefore, no minor should be 
employed by you or by anyone from whom you 
hire equipment without having working papers 
made out in proper form. 


Drayage 


157 


Theft .—Insurance against the theft of single 
packages, or of truck loads from trucks is hard 
for a public truckman to obtain owing to the un¬ 
happy experiences had by insurance companies 
who in the past have issued these policies. A 
common practice is for the truckman to limit his 
liability for the loss of any package to the amount 
of Fifty Dollars, which should be within his 
capacity to pay, but the merchant who carries a 
transit policy must secure permission from his in¬ 
surance company to accept this limitation from 
his truckman, which upon the approval of the 
truckman by the insurance company, is issued in 
the form of a “rider” to the transit policy for 
which an additional premium is charged. 

Burglary .—Burglary insurance policies are 
issued covering merchandise upon trucks, while in 
garages or stables overnight. If, as is the usual 
form of policy, evidence of forcible entry must 
be shown, you are not covered in the event of a 
hold-up or if the loss is brought about through 
the collusion of employes. On the other hand, 
if you have a “hold-up” policy, a burglary may 
not be covered. Again, while it is unlikely, the 
safety of goods may be insured in a transit policy 
from point of origin to consignee. Read your 
policies carefully to be sure that you are fully 
covered and that you are not paying for double 
coverage of the same thing. 

In leaving the subject of insurance, the follow¬ 
ing thought is submitted for careful consideration. 
Rates for all insurance are made from the ex- 


158 Fundamentals of Transportation 

perience of insurance companies in each line and 
you contribute to the making of your own rate. 
Do not take the attitude “I should worry, I’m 
insured”—but endeavor through trying to pre¬ 
vent and trying to minimize payments for losses 
to lower the cost of your own insurance. 

Section II 

Operation 

Management .—The management of a large 
trucking company or the drayage equipment of a 
great industry, operating either motor or horse- 
drawn trucks, is somewhat similar to the opera¬ 
tion of a railroad and a most skilful traffic man¬ 
agement is requisite. 

Operating .—Trucks are usually sent out from 
a stable or garage in the early morning and the 
drivers or chauffeurs are ordered to go to certain 
points for the purpose of performing some definite 
task. The trucks are earning money only when 
loaded and the wheels are moving. The loss by 
delay in truck movement, particularly in city dray¬ 
age due to congestion, is a very great item and 
skilful manipulation is thereby rendered neces¬ 
sary. Endeavors should always be made to have 
trucks move both ways loaded; i.e., after deliver¬ 
ing the initial load, a return load should be secur¬ 
ed if possible at the point of delivery or in the 
vicinity. 

Method of Operation by Large Drayage Com - 
panies .—One of the largest drayage companies in 


Drayage 


159 


this country has a system of operation which is 
very efficient and a description of the method is 
as follows: 

Two men are assigned to the operating desk 
upon which are four telephones. The first duty 
of these men on arrival at their desk is to call 
the stable and garage on the telephone and re¬ 
ceive from the superintendent the day’s layout. 
This report is made into a chart on which is shown 
the name of each driver or chauffeur, the house 
number and license number of each truck, and the 
time of departure. The drivers and chauffeurs 
have orders to call these men on the telephone 
as soon as each load is delivered, unless assigned 
to a particular job for the entire day. New 
orders are then given, the aim being to have the 
vehicles move loaded in all directions. At any 
time during the day these operating men can tell 
approximately the exact location of each vehicle. 

Superintendence. — Foremen in automobile 
runabouts are patrolling the delivery territory 
watching the trucks move and giving assistance 
when necessary—they also keep in touch regular¬ 
ly with the operating men. 

Loads which are to be shipped for transporta¬ 
tion by steamship or railroad lines are sent out 
on information received from the foremen, who 
ascertain and advise the prevailing conditions; 
i.e., whether or not there is a line of trucks wait¬ 
ing to effect deliveries, and the operators are 
governed accordingly; loads for the congested 


160 Fundamentals of Transportation 

lines being withheld until a more favorable time 
and loads for the open lines being rushed. 

In long distance trucking endeavor i^ always 
made to secure a return load and low rates may 
often be secured through knowledge of the routes 
of long distance motor truck companies. 

Personnel .—It is not possible to give an organi¬ 
zation chart of a drayage department or com¬ 
pany that could be followed generally, but the 
chart shown on page 161 would probably serve 
the purposes of an average drayage department 
or company. 

Control of Drayage .—If a business concern 
owns its drayage equipment, it should be under 
the control of the traffic manager and the various 
duties shown in the organization chart should be 
assigned to competent employes. 

The Skilful Drayage Manager .—The Cartage 
branch of a traffic department is a fertile field for 
economical improvement. The employment of a 
skilled drayage manager and the acquisition of an 
adequate drayage plant would enable many in¬ 
dustries to effect a material decrease in cartage 
expenses. 


Section III 

Store Door Delivery 

Definition .—Store Door Delivery is simply the 
continuation of the rail or water transportation 
of freight to the address of consignee by truck 


DRAYAGE DIRECTOR 


Drayage 


161 












162 Fundamentals of Transportation 

and plans to progress the method in moving 
freight to the efficiency long since attained in the 
handling of mail and of express matter. A com¬ 
plete system of Store Door Delivery would pro¬ 
vide for the continuous movement of freight by 
one agency or carrier from the address of con¬ 
signor to the address of consignee. 

Present Method of Handling Freight .—Under 
the prevailing method of handling freight, the 
shipper must truck it to a freight station, the rail¬ 
road or steamship company signs a bill of lading, 
transports freight to its terminal nearest address 
of consignee and sends the consignee a notice to 
call for it. This practice is wasteful from every 
viewpoint and is continued only because of the 
lack of coordination between shippers, carriers 
and truck operators. 

The consignor has to truck freight to the rail¬ 
road and his trucking charge is relatively high as 
against a community trucking service with trucks 
moving fully loaded. Each light loaded truck is 
wasteful and their number increases delay at ter¬ 
minals. Beyond this his freight rates are higher 
because of subsequent lack of economy in han¬ 
dling, for the railroad has to serve the trucks of 
each individual, multiplying the number of opera¬ 
tions as against an organized trucking service. 
Arriving at terminal, notices of arrival must be 
sent to consignee and storage space provided at 
terminals for merchandise until consignee sends 
for same. The expense of sending trucks of 


Drayage 


163 


many consignees and the need for sorting freight 
at terminals to permit each consignee to select his 
freight, is costly, increasing terminal overhead and 
loading charges. Freight may be brought in only 
to the capacity of terminals and this results in 
further slowing the movement of freight. 

The consignee pays higher trucking charges due 
to partly loaded trucks, delays at terminals, high 
loading charges and street congestion. 

This spread of waste is reflected in a higher 
cost for transporting freight than is justified. 
Some large cities already have in part a store door 
delivery and the movement to make such an ar¬ 
rangement is national in scope. 


Chapter 13 

ROUTING 

COLLATERIAL READING: In the Freight Traffic 
Red Book—Routing 

Section I 

Interstate Commerce Commission 
Rulings on Routing 

Seven Points on Routing. —1. The Interstate 
Commerce Commission has ruled that the lawful 
charge on any shipment is the tariff rate via the 
route over which the shipment moves. 

2. That to secure desired delivery and avoid 
unnecessary terminal or switching charges, the 
shipper may determine the terminal routing of 
shipments which are to go beyond the lines of the 
initial carrier; and that his instructions must be 
observed. 

3. That the carriers may not disregard the in¬ 
structions of shippers as to intermediate routing, 
except when the tariff of the initial line dictates 
the intermediate routing; that is, rates are not 
applicable except over the routes specifically 
named. 

4. That when such reservation is made in the 
tariff, where all-rail and rail-and-water rates are 
available, the agent of carrier must have the ship¬ 
per designate which of the two he wishes to use, 
and the agent must not route shipment via a route 

165 


166 Fundamentals of Transportation 

that will be more expensive to him, or that does 
not furnish as good service. 

5. That in the absence of specific through rout¬ 
ing by shipper, it is the duty of the agent of 
carrier to route shipment via the cheapest rea¬ 
sonable route known to him, of the class desig¬ 
nated by shipper; that is, all-rail or rail-and-water, 
and via which he has rates that he can lawfully 
use. 

6. That shippers must bear in mind that there 
is a limit beyond which an agent of a carrier 
could not reasonably be expected to know, as to 
terminal delivery or local rates at distant points 
and on lines of distant roads to, or with, which he 
has no specific joint through rates. 

7. That consignors and consignees should co¬ 
operate with agents of carriers in avoiding mis¬ 
understandings and errors in routing, and must 
expect to bear some responsibility in connection 
therewith. 

Importance of Routing .—While it is the ruling 
of the Interstate Commerce Commission that the 
agent of carrier must forward an unrouted ship¬ 
ment via the cheapest reasonable route, yet if the 
shipper does not know the cheapest route, the 
shipment may be forwarded via a more expensive 
route and the overcharge thus incurred becomes 
a loss, because, owing to shipper’s lack of knowl¬ 
edge, no claim will be made; hence the necessity 
for a traffic man who is versed in transportation 
law and in the application of tariffs. The skillful 


Routing 


167 


traffic man invariably routes his shipments, and 
also ascertains if the consignments received in¬ 
bound are correctly routed. When we consider 
the fact that thousands of unrouted shipments are 
handled by carriers, it is reasonable to assume that 
many errors are made. Therefore, by correct 
routing of outbound shipments and by checking the 
inbound routing of freight received, a competent 
traffic man may save a large amount in trans¬ 
portation expenses. 

Determination of Route .—The first thing to 
determine in making a shipment by freight is the 
name of the railroad station or boat landing at 
which consignee will receive the goods, and this 
determination must be based on fact and not on 
conjecture. The destination and terminal delivery 
should be stated so definitely that there will be 
no question as to its location. 

The shipping department should be furnished 
with the current issue of a standard Shippers’ 
Guide and it should be consulted before shipping 
to an obscure or unfamiliar point, when complete 
routing directions are not given on the purchaser’s 
order for the goods. 

Section II 

The Routing Sheet and the Route Map 

Routing Sheet .—In order to facilitate the 
handling of traffic, large traffic departments 
should have prepared for the guidance of their 
shipping departments a Routing Sheet, the method 


168 Fundamentals of Transportation 

and the preparation being governed by the volume 
of the traffic. It is advisable to make a separate 
Routing Sheet for each State in which goods are 
distributed. 

The specimen Routing Sheets, with Keys, 
shown on pages 169-176, were prepared by the 
traffic department of one of the largest industries 
in this country which forwards and receives freight 
to and from almost every State, and also has a 
large foreign commerce. The traffic manager has 
sheets prepared governing the traffic from its prin¬ 
cipal factories to practically all of the States, a 
separate Routing Sheet being made for each State. 
The specimen Routing Sheets A and B are applica¬ 
ble to the State of Michigan which is located in 
both the Official and Western Classification terri¬ 
tories, and the Routing Sheets C and D are ap¬ 
plicable to the State of Kansas, located in the 
Western Classification territory. 

Keys .—The keys furnished are applicable only 
to traffic from New York City, but the Routing 
Sheet contains symbols designating the routes 
from their various plants, a separate key, or keys, 
being provided for each plant for traffic forward¬ 
ed from the point at which it is located. The 
“New York Routing Key—West” shows the 
routes via which traffic from New York City, 
destined to points in the Western Classification 
territory, is routed by this traffic department, and 
the routes in this key are indicated by letters only. 
The “New York Routing Key—East” shows the 


Routing 169 

routes via which traffic is forwarded to all other 
points in the United States located in the Official 
and Southern Classification territories, and these 
routes are indicated by numbered letters or num¬ 
bers. 

NEW YORK ROUTING KEY—EAST 


Route 

Letter Freight Routing 

1.. ..ErieR R 

la. .. Erie R R 

lb. . .ErieR Rc/oGT 

lc. .. Erie RRc/oNY C&StL 

l d. .. Erie R R c/o P M 

2.. ..DL&W 

2a.. .DL&Wc/oWab 
2b... D L & W c/o Lack Line 
2c... D L & W c/o GT 
2d...DL&Wc/oPM 
2m. .DL&Wc/oNY C 
2p... D L & W c/o D & B S B Co 
at Bflo 

2q... D L & W c/o C & B T Co 
2t.. DL&Wc/oMC 

3.. ..PRR 

3a... P R R c/o SUL 
3b... P R R c/o Emp Line c/o D 
& CNav Co 

3c... P R R c/o SUL c/o I C 
3d... P R R c/o Can Sou Line 
3f.. . P R R c/o Emp Line 
3g.. .PRRc/o Atl Coast Desp 
3h... P R R c/o Seaboard Desp 
3i. .. P R R c/o East & Sou Desp 
3k... P R R c/o Sou Ry 
3m.. P R R c/o N & W 
3n...PRRc/oC&0 
3p...P R R c/oN S 
3q... P R R c/o Rich-Wash Line 
3u... P R R c/o SALc/oD&S 
3v... P R R c/o VirRy 

4.. ..NYC 
4a.. NYC 
4b...NYC 


Route 

Letter Freight Routing 

4c. 

..NYC 

4d.. 

.NYC 

4e.. 

.NYC c/o Can Sou Line 

4w. 

.N YCc/oM DTCo c/o 


LE&W 

4x.. 

.NYCc/oGreat Lakes 


Transit Co. 

5... 

.WS 

5a.. 

. W S c/o Wab 

5b.. 

. W S c/o NYC 

5c.. 

.WSc/oMC 

5d.. 

. W S c/o GT 

5e.. 

.WSc/oNYC&StL 

6... 

.NYNH&H (Pier 37, 


ER) 

7... 

.NYNH&H (Pier 39, 


ER) 

8 ... 

. C R R of N J c/o P & R 

9... 

.CRRofNJ 

10... 

B&O 

10a.. 

B&O c/o Cont Line 

11... 

.LV 

11a.. 

. L V c/o Traders Desp 

lib.. 

. L V c/o NYC 

11c.. 

.LV c/o Wab 

lid.. 

.LVc/oMC 

lie.. 

.LVc/oGT 

Ilf.. 

.LVc/oPM 

llg.. 

L Vc/oN YC& St Lc/o 


CI&L 

lip.. 

. L V c/o Great Lakes Tran¬ 


sit Co 

llq.. 

. L V c/o C & B Trans Co 


170 


Fundamentals of Transportation 


NEW YORK ROUTING KEY—EAST 


Route 

Letter Freight Routing 

12.. ..NYO&W 

12a... N Y O & W c/o Ont Cent 
Desp 

13.. . .NY Cc/o D & H 

14.. .. Long Isl 

15.. .. Staten Isl R T Co 

16.. .. C R R of N J c/o B R D 

17.. . .C R R ofN J c/o C S D 

18.. .. C R R of N J c/o Sou States 

Desp 

20.. ..NY&NJSBCo 

21.. ..Truck 

25.. ..0.TCo 

25a.. .0 DTCo c/oACL 
25b... 0 D T Co c/o SAL 
25c.. .0DTCoc/oPAL 
25d... O D T Co c/o VT & G 
25e.. .0 D T Co c/oN&WDesp 
25f.. .ODTCo c/o C G D 
25g.. .0 DTCo c/o K D 
25h.. .0 D T Co c/o P A L c/o 
TC 

251.. . O D T Co c/o N & W 
25j. ..ODTCoc/oC&O 
25k...ODTCo c/oPAL 

25 m.. O D T Co c/o A C L c/o A 
& W P c/o M &0 
25p.. .0 D T Co c/o ACLc/oA 
&WP 

25s.. .0 DT Co c/o N S 
25u.. .0 DTCoc/oNS 
25v.. .0 D T Co c/o Vir Ry 

27.. . .ClydeLine 

27a.. . Clyde Line c/o ACL 
27b... Clyde Line c/o SAL 
27c... Clyde Line c/o Sou Ry 
27d... Clyde Line c/o G S & F 

27m.. Clyde Line c/o Chas F F 
Line c/o M &0 

27t... Mallory Line c/o A B & A 
at Bruns 


Route 

Letter Freight Routing 

30.. . .Ocean S S Co 

30a.. . Ocean S S Co c/o ACL 
30b... Ocean S S Co c/o S A L 
30k.. .Ocean S S Co c/o C of Ga 

34.. ..CV 

34a... C V c/o Natl Desp 

35.. .. Hudson Nav Co 

36.. . .JoyLine 

38.. . . Bridgeport Line 

39.. . . Fall River Line 

40.. .. Hartford Line 

41.. . .Met S S Co 

41b... Met S S Co c/o GT 
41c... Met S S Co c/oMC 

42.. . .Met S S Co 

43.. .. New Bedford Line 

44.. .. New Haven S B Line 

45.. .. Norwich Line 

46.. .. Providence Line 

47.. .. Blackstone Valley Trans 

Co 

48.. .. Ben Frank Trans Co 

50.. . .Morgan Line 

51.. . .Mallory Line 

52.. .. Hudson Nav Co 

53.. .. Cent-Hud S B Co 

54.. . . Saugerties Line 

56.. .. Catskill Line 

57.. . .Morton Line 

59.. . .North River S B Co (Str 

Raleigh) 

62.. .. Merchants S B Co 

63.. .. Middlesex Trans Co 

66.. .. Chelsea Line 

67.. .. Merchants Stamford Line 

69.. . .Merchants Bridgeport Line 

70.. ..NE&TCo 

71.. .. Colonial Nav Co 

72.. .. Thames River Line 

73.. . . Inland Waterways S S Co 

74.. .. Patten Line 

75.. .. Lower Hudson S B Co 


Routing 


171 


NEW YORK ROUTING KEY—WEST 


Route 

Letter Freight Routing 

A. LVc/oNY C&StL c/o 

C B & Q at St L 

AA...L Vc/oN YC& St L c/o 
C B & Q at Chgo 

B.L Vc/oN YC&StLc/o 

C B & Q at St L c/o Nor 
Pac at Billings 

C.L Vc/oN YC& St Lc/o 

C & A 


CB. ..LVc/oNY C & St Lc/o 

St L S W at St L 

CC. ..L Vc/oNYC&StLc/o 

C B & Q at Chgo c/o Nor 
Pac 


CP.. .New Haven Line c/o C P 
Desp 

D. ...L Vc/oN YC&StLc/o 

C B & Q at Chgo c/o Great 
Nor 

DB. ..LVc/oNY C & St L c/o 
C B & Q at St L c/o Grt 
Nor at Billings 

E. ... L V c/o N Y C & St L c/o 

Mo Pac at St L 

ER. ..LVc/oNYC&StL c/o 
C R I & P at St L 


ES...L Vc/oN YC&StLc/o 
Mo Pac at St L c/o A T & 
S F at Kan City 

EU... L V c/o N Y C & St L c/o 
Mo Pac at St L c/o Union 
Pac at Kan City 

F. ...L Vc/oN YC&StLc/o 

C & N W at Chgo 
FU...L Vc/oNYC&StLc/o 
C & N W at Chgo c/o 
Union Pac at Omaha 

G. ...LVc/oNYC&StL c/o 

C M & St P at Chgo 

GT. ..L Vc/oN YC&StLc/o 

Goodrich Trans Co 

GU. ..LVc/oNY C&StL c/o 

C M & St P at Chgo c/o 
Union Pac at Omaha 

H. ,.. L V c/o N Y C & St L c/o 


Route 

Letter Freight Routing 
CGWat Chgo 

I.L V c/o N Y C & St L c/o 

I C at Chgo 

IM... L V c/o N Y C & St L c/o 
StLIM&Sat St L 
J .DL&Wc/o Wab 

JX. . DL&Wc/oP M v i a 

Mackinaw City 

K. ...LV c/o N Y C & St L c/o 

MK&TatStL 

L. ... L V c/o N Y C & St L c/o 

St L & S F at St L 
LA.. .L Vc/oNYC&StLc/o 
“Across the Lake” 

LE. ..L Vc/oNYC&StLc/o 

Mo Pac at St L 

LL. ..L Vc/oN YC&StLc/o 

Frisco at St L 

LM. ,L Vc/oN YC&StLc/o 
Mo Pac at St L 

LR. ..LVc/oNYC&StL c/o 

C R I & P at St L 

LS. ..L Vc/oN YC&StLc/o 

AT & SF at Chgo 

M. . . . Morgan Line 

MG. . Morgan Line c/o I & G N 

MH. . Morgan Line c/o G H & H 
MK.. Morgan Line c/o MK&T 
ML . . Mallory Line 

MM.. Morgan Line 

MR. . Morgan Line c/o L R & N 

at NO 

MS. . .Morgan Line c/oG C & 

SF 

MV. . Morgan Line c/o T & B 
MX.. Morgan Line c/o Tex Mid 

N. . .. D L & W c/o Lack Line 
R....L Vc/oN YC&StLc/o 

C R I & P at Chgo 
RR...L Vc/oNYC&StLc/o 
C R I & P at St L 
RU...L Vc/oN YC&StLc/o 
C R I & P at Chgo c/o 
Union Pac 





172 Fundamentals of Transportation 

NEW YORK ROUTING KEY—WEST 


Route 

Letter Freight Routing 

S.L Vc/oN YC& St Lc/o 

AT & SF at Chgo 
SL.... L V c/o N Y C & St L c/o 
CB & Q at Chgo c/o D & R 
Gc/oSPLA&SL 
SO... L V c/o N Y C & St L c/o 
SooLine at Chgo 


Route 

Letter Freight Routing 
SW... L V c/o NY C & St L c/o 
St L S W at St L 
TC.. .Texas City S S Co 
V.... Clyde S S C c/o V T & G 
c/o V S & P at Vicksburg 
X....L Vc/oNYC&StLc/o 
Mo Pac at St L c/o D & 
R G c/o West Pac 


ROUTING ORDER—A 
TO SPECIFIC POINTS IN MICHIGAN 

Be governed by routing shown under group number opposite your 
city. 

New York.. 1 Baltimore... 2 Charleston... 3 Louisville.... 4 
Cleveland.. 2 Chicago.... 2 New Orleans. 3 Evansville... 4 


TO 

1 

GROUPS 

2 3 

4 

Adrian, Lenawee. 

.... 2a 

10 

2k 

4b 

Alma, Gratiot. 

.... 2c 

3j 

2k 

25 

Alpena, Alpena. 

.... 2d 

3x 

2k 

25 

Ann Arbor, Washtenaw. 

.... 2t 

3j 

2k 

31 

Bad Axe, Huron. 

.... Ilf 

3x 

2k 

25 

Battle Creek, Calhoun. 

.... 2t 

10 

2k 

29 

Bay City, Bay. 

.... Ilf 

3x 

2k 

31 

Benton Harbor, Berrien. 

.... 2d 

3x 

2h 

4 

Big Rapids, Mecosta. 

.... 2d 

3a 

2k 

3r 

Buchanan, Berrien. 

.... 2t 

10 

2k 

31 

Cadillac, Wixford. 


3a 

2k 

3r 

Calumet, Houghton. 

.... F 

F 

F 

F 

Charlotte, Eaton. 

.... 2t 

10 

2k 

29 

Cheboygan, Cheboygan. 

.... 2t 

10 

2k 

31 

Coldwater, Branch. 

.... 4 

4 

2k 

30 

DETROIT, Wayne. 


3 

2k 

31 

Escanaba, Delat. 

.... F 

F 

F 

F 

Flint, Genesee. 

.... Ilf 

3x 

2k 

29 

Grand Rapids, Kent. 

.... 2d 

3a 

2k 

3r 

Greenville, Montcalm. 

.... 2d 

3x 

2k 

29 

Hancock, Houghton. 

.... F 

F 

F 

F 

Hillsdale, Hillsdale. 

.... 4b 

4 

2k 

30 

Holland, Ottawa. 

.... 2d 

3x 

2k 

25 

Houghton, Houghton. 

.... F 

F 

F 

F 

Iron Mountain, Dickinson.. . . 

..... G 

G 

G 

G 




























Routing 173 


GROUPS 


TO 

1 

2 

3 

4 

Iron River, Iron. 

... F 

F 

F 

F 

Ironwood, Gogebic. 

... F 

F 

F 

F 

Ishpeming, Marquette. 

... F 

F 

F 

F 

JACKSON, Jackson. 

...It 

3y 

2k 

4 

KALAMAZOO, Kalamazoo.. . . 

...It 

3a 

2k 

3r 

Lansing, Ingham. 

... 2t 

3y 

2k 

29 

Lapeer, Lapeer. 

... lie 

3y 

2k 

25 

Ludington, Mason. 

...2d 

3x 

2k 

25 

Manistee, Manistee. 

...2d 

3x 

2k 

25 

Manistique, Schollcraft. 

. . . JX 

JX 

JX 

SO 

Marquette, Marquette. 

... G 

G 

G 

G 

Menominee, Menominee. 

... G 

G 

G 

G 

Monroe, Monroe. 

...2d 

3 

2k 

30 

Mt. Clemens, Macomb. 

. .. 2c 

3z 

2k 

29 

MUSKEGON, Muskegon. 

...2d 

3a 

2k 

25 

Niles, Berrien. 

... 2t 

10 

2h 

4 

Owasso, Shiawassee. 

...2c 

3j 

2k 

31 

Petosky, Emmett. 

...2d 

3i 

2k 

3r 

Pontiac, Oakland. 

...2c 

3z 

K 

29 

Port Huron, St. Clair. 

... Ilf 

3z 

K 

29 

Saginaw, Saginaw. 

... Ilf 

3x 

2k 

31 

St. Johns, Clinton. 

... 2c 

3z 

2k 

29 

Sault Ste. Marie, Chippewa.. . . 

... JX 

JX 

JX 

JX 

South Haven, Van Buren. 

... 2t 

2y 

2k 

31 

Sturgis, St. Joseph. 

. .. lib 

3 

2k 

3r 

Traverse City, Gd. Traverse. . . 

...2d 

3a 

2k 

25 


ROUTING ORDER B—TO POINTS NOT NAMED IN A 

To points not given in A, refer to Shippers’ Guide and ascertain 
name of railroad on which town is located and use route given below 
for points on that railroad. If town for which shipment is intended 
is not on a railroad and the order does not show the railroad station 
at which goods should be delivered, insert the railroad station accord- 


ing to Shippers’ Guide and use route to the railroad point. 


RAILROADS 

i 

GROUPS 

2 3 

4 

Ann Arbor. 


3j 

3k 

4 

Arcadia & Betsey River. 

. 2d 

3x 

2k 

25 

Boyne City Gaylord & Alpena. . . 

. 2t 

3y 

2k 

3r 

Chicago Kalamazoo & Saginaw.. 

. 2t 

3a 

2k 

3r 

Big Four (C.C.C. & St.L.). 

. 4d 

10 

2h 

4 

Detroit Bay City & Western. 

. Ilf 

3x 

2k 

31 

Detroit & Toledo Short Line. 


3a 

2k 

4 

East Jordan & Southern. 

. 2d 

3x 

2k 

25 


































174 Fundamentals of Transportation 




GROUPS 


RAILROADS 

1 

2 

3 

4 

Erie & Michigan Ry. & Nav. Co... 

Ilf 

3x 

2k 

25 

Grand Trunk. 

2c 

3z 

2k 

29 

Kalamazoo Lake Shore & Chicago. 

2t 

3a 

2k 

3r 

Ludington & Northern. 

2d 

3x 

2k 

25 

Manistee & Northeastern. 

2d 

3x 

2k 

25 

Michigan Central. 

2t 

3y 

2k 

31 

New York Central. 

4 

4 

2h 

4b 

Pennsylvania. 

3 

3 

6a 

3 

Pere Marquette. 

2d 

3x 

2k 

25 

Rapid. 

2c 

3z 

2k 

29 

Wabash. 

2a 

3a 

2k 

6 

Blaney & Southern (Northern Pen¬ 





insular) . 

JX 

JX 

JX 

SO 

C. M. & St. P. 

G 

G 

G 

G 

C. & N. W. 

F 

F 

F 

F 

Copper Range. 

G 

G 

G 

G 

Duluth South Shore & Atl. 

JX 

JX 

JX 

F 

Escanaba & Lake Superior. 

F 

F 

F 

F 

Manistique & Lake Superior. 

JX 

JX 

JX 

SO 

Mineral Range. 

F 

F 

F 

F 

Soo Line. 

JX 

JX 

JX 

SO 

Munising Marquette & S.E. 

JX 

JX 

JX 

F 

Ontonagon. 

G 

G 

G 

G 

Wisconsin & Michigan. 

G 

G 

G 

G 


ROUTING ORDER—C 
TO 

KANSAS 

Be governed by routing shown under group number opposite your 
city. 

New York.. 1 Baltimore... 2 Charleston... 3 Louisville 4 

Cleveland... 2 Chicago.... 2 New Orleans. 3 Evansville... 4 


GROUPS 


TO 

1 

2 

3 

4 

ABILENE, Dickinson. 

... S 

S 

ES 

S 

Almena, Norton. 

... R 

R 

ER 

ER 

Altamont, Labette. 

... L 

L 

LL 

L 

Altoona, Wilson. 

... E 

E 

E 

E 

ANTHONY, Harper. 

... S 

S 

ER 

ER 

ARGENTINE, Wyandotte. ... 

... S 

S 

ES 

S 

ARKANSAS CITY, Cowley... 

... S 

S 

LL 

L 

ATCHISON, Atchison. 

... R 

R 

E 

E 

Atwood, Rawlins. 

... AA 

AA 

A 

A 

Axtell, Marshall. 

... E 

E 

E 

E 

































Routing 175 


GROUPS 


TO 

1 

2 

3 

4 

Beloit, Mitchell. 

E 

E 

E 

FU 

Burlington, Coffey. 

S 

S 

K 

K 

Calvert, Norton. 

R 

R 

ER 

ER 

Carden, Marshall. 

EU 

EU 

EU 

EU 

Chapman, Dickinson. 

EU 

EU 

EU 

EU 

CHERRYVALE, Montgomery.. .. 

L 

L 

LL 

L 

COFFEYVILLE, Montgomery. .. 

K 

K 

K 

K 

CONCORDIA, Cloud. 

AA 

AA 

E 

E 

Ellsworth, Ellsworth. 

L 

L 

LL 

L 

EMPORIA, Lyon. 

S 

S 

K 

K 

FORT SCOTT, Bourbon. 

L 

L 

LL 

L 

GALENA, Cherokee. 

L 

L 

LL 

L 

GREAT BEND, Barton. 

S 

S 

E 

E 

Hanover, Washington. 

AA 

AA 

A 

A 

Hays, Ellis. 

EU 

EU 

EU 

EU 

Hollis, Cloud. 

AA 

AA 

A 

A 

HORTON, Brown. 

R 

R 

ER 

ER 

HUTCHINSON, Reno. 

R 

R 

ER 

ER 

INDEPENDENCE, Montgomery. S 

S 

E 

E 

LEAVENWORTH, Leavenworth.. 

R 

,R 

E 

E 

Logan, Phillips. 

E 

E 

E 

E 

Lorraine, Ellsworth. 

L 

L 

LL 

L 

Lyons, Rice. 

L 

L 

LL 

L 

MANHATTAN, Riley. 

R 

R 

ER 

ER 

Marysville, Marshall. 

EU 

EU 

EU 

EU 

Morganville, Clay. 

ER 

ER 

ER 

ER 

Mound City, Linn. 

E 

E 

E 

E 

Oakley, Logan. 

S 

S 

E 

E 

OTTAWA, Franklin. 

S 

S 

E 

E 

PARSONS, Labette. 

L 

L 

LL 

L 

PITTSBURG, Crawford. 

L 

L 

LL 

L 

Plaster Mill, Marshall. 

E 

E 

E 

E 

SALINA, Saline. 

E 

E 

E 

E 

TOPEKA, Shawnee. 

R 

R 

ER 

ER 

Troy, Doniphan. 

R 

R 

ER 

ER 

Viola, Sedgwick. 

S 

S 

t 

E 

WELLINGTON, Sumner. 

R 

R 

ER 

ER 

WICHITA, Sedgwick. 

R 

R 

LL 

L 

WINFIELD, Cowley. 

L 

L 

LL 

L 

Winona, Logan. 

EU 

EU 

EU 

EU 

Yale, Crawford. 

E 

E 

E 

E 







































176 Fundamentals of Transportation 


ROUTING ORDER D-TO POINTS NOT NAMED IN C 

To points not specified, refer to the Shippers’Guide and ascertain 
name of railroad on which town is located and use route given below 
for points on that railroad. If town for which shipment is intended 
is not on a railroad and the order does not show the railroad station 
at which goods should be delivered, insert the railroad station accord¬ 
ing to the Shippers’ Guide and use route to the railroad point. 


RAILROADS 

1 

GROUPS 

2 3 

4 

Atchison, Topeka & Santa Fe. 

S 

S 

ES 

S 

Chicago, Burlington & Quincy. . . . 

AA 

AA 

A 

A 

Chicago, Rock Island & Pacific.. . . 

R 

R 

ER 

ER 

Kansas City, Clinton & Springfield.. 

, S 

E 

LL 

E 

Kansas City, Mexico & Orient 

S 

E 

LL 

EG 

Kansas City Southern. 

S 

S 

LL 

E 

Kansas, Oklahoma & Gulf. 

E 

E 

LL 

E 

Leavenworth & Topeka. 

R 

R 

E 

E 

Midland Valley. 

S 

S 

LL 

L 

Missouri, Kansas & Texas. 

K 

K 

K 

K 

Missouri Pacific. 

E 

E 

E 

E 

Salina Northern. 

EU 

EU 

EU 

EU 

St. Joseph & Grand Island. 

R 

R 

E 

E 

St. Louis, San Francisco. 

L 

L 

LL 

L 

Union Pacific. 

EU 

EU 

EU 

EU 

Wichita Northwestern. 

S 

S 

ER 

ER 


Interpretation of Routing Sheet .—The follow¬ 
ing examples illustrate how routing is determined: 
As soon as the destination is located on Routing 
Sheet, the index number or letter indicates the 
key applicable; i.e., Key-East, Key-West. 

For shipments to Alma, Gratiot County, Michi¬ 
gan, this company has selected the route desig¬ 
nated by the characters “2c.” “New York Rout¬ 
ing Key—East” shows the route “2c” as D., L. 
& W., c/o G. T. 

Calumet, Houghton County, Michigan, is 
in the Western Classification territory and the 
route selected is designated by the letter “F.” 














Routing 177 

The “New York Routing Key—West” shows the 
“F” routing to be L. V. c/o N. Y., C. & St. L. 
c/o C. & N. W. at Chicago. 

For shipments to Leavenworth, Kansas, the 
routing selected is designated by the letter “R.” 
The “New York Routing Key—West” shows the 
“R” routing to be L. V. c/o N. Y. C. & St. L. 
c/o C. R. I. & P. at Chicago. 

Madison, Greenwood County, Kansas, is locat¬ 
ed on the Missouri Pacific Railroad and is not 
included in the points named on Routing Order 
C. The Routing Order D shows that the routing 
selected for the points on the Missouri Pacific 
Railroad is designated by the letter “E.” The 
“New York Routing Key—West” shows the “E” 
routing to be L. V. c/o N. Y. C. & St. L. c/o Mo. 
Pac. at St. L. 

It is not our intention to convey the idea that 
the Routing Sheets shown in this book indicate 
the correct or preferred routing of freight for¬ 
warded from New York City to points in 
Michigan and Kansas. The routing shown is the 
preference of the traffic manager of this large in¬ 
dustry. Other traffic managers would probably 
prefer some other routes, being governed largely 
by the location of their industries. 

Map of Transportation Lines .—The traffic 
man should be so familiar with this map that he 
can trace the main lines of the important carriers 
and should know the merits of the various systems, 
their relations to each other, the large railroad 
centers and their junctions. 


178 Fundamentals of Transportation 

The map furnished with this course should be 
carefully studied in order that the principal ar¬ 
teries of traffic will be constantly visualized in 
the student’s mind. 

This map is not intended to be used for 
practical purposes, but simply to give a bird’s-eye 
view of the principal transportation systems of 
our country. In order to determine the route for 
a shipment, standard guides should always be con¬ 
sulted. 

It will be observed, in studying the map, that 
the important gateways, or junctions, and also the 
important terminals are represented by solid red 
circles. The key to the map is shown in the lower 
right-hand corner and it will be of assistance in 
locating the various lines. The table in the lower 
left-hand corner shows the short line distance be¬ 
tween the important railroad centers in the United 
States. 

Use of Railroad Map .—A good method of 
learning how to select a route to a competitive 
point is to consult an official railroad map and 
trace the course of a particular railroad, for the 
purpose of ascertaining the points where it crosses 
other lines, whether it is direct or circuitous, and 
the lines with which it connects at various junc¬ 
tions. 


Routing 179 

Section III 

Ignorance of Fundamentals Invites Loss 

Traffic Inquiry .—Recently an eminent traffic 
man in addressing a large number of the members 
of a traffic club, asked them how and why they 
would route freight between two certain points, 
and not one volunteered an answer. The great 
fault with the method of transacting transporta¬ 
tion business is that it is performed in a mechanical 
manner and the reason why is not considered. If 
a man will stop to ask why he does a certain 
thing or why it could not be done better some 
other way, he will acquire one of the fundamentals 
of success. 

Not very long ago a traffic man asked a large 
New York shipper via what line he was forward¬ 
ing his shipments to a certain concern in Chicago 
and he replied that he was shipping by the New 
York Central Railroad. When asked why he 
patronized that line, he said, “Because I have al¬ 
ways shipped via that line and I like the New 
York Central Railroad.” “Don’t you know,” 
said the traffic man, “that if you shipped by the 
Pennsylvania Railroad you would save your cus¬ 
tomer a considerable amount of cartage?” He 
did not know, and it had never before been 
brought to his attention, but he said that he would 
investigate and hereafter use the lines having the 
nearest terminals to his customers. 

Custom versus Knowledge .—Many shippers 
patronize a particular line simply because of cus- 


180 Fundamentals of Transportation 

tom, or because it is well known and liked. They 
do not know that by forwarding some of their 
shipments via other lines they might save cartage 
expense to their customers, and that occasionally 
differential lines may be used advantageously. In¬ 
bound shipments are frequently received at ter¬ 
minals quite distant from the consignees’ places of 
business, and as a matter of custom they send for 
the freight without complaint, not realizing that 
if they would keep in touch with their purchasing 
department and furnish it with proper directions 
for terminal routing, a large unnecessary expense 
would be saved. 

Efforts of the Merchants’ Association .—The 
Merchants’ Association of New York for a long 
time has been endeavoring to educate its mem¬ 
bers on two points: 

1. To get purchasers to specify in their orders 
the terminal delivery desired. 

2. To have shippers write the terminal rout¬ 
ing in the bill of lading. 

Their efforts have been very successful, but 
the country is large and many merchants still 
remain in ignorance of the importance of traffic 
knowledge and the necessity of a traffic depart¬ 
ment. Even one skillful traffic man may constitute 
an effective traffic department. 


Chapter 14 

DEMURRAGE AND STORAGE 

COLLATERAL READING: In the Freight Traffic Red 

Book—National Car Demurrage Rules and Charges; 

Storage. 

Section I 

Demurrage Rules and Practice 

Definition of Demurrage. —Demurrage is the 
charge assessed by carriers in accordance with the 
Freight Tariff giving the National Car Demur¬ 
rage Rules and Charges issued by the American 
Railway Association Tariff Bureau, and applies 
after the expiration of the free time limit on cars 
held by or for shippers or consignees for loading 
and unloading, or for any other purpose. It is 
also a charge assessed for holding lighters be¬ 
yond the lay day period. 

Necessity for Demurrage Charge. —The pur¬ 
pose of this demurrage charge is to impose a 
penalty on shippers and consignees for their delay 
in handling cars or lighters, and is assessed for 
the purpose of preventing, as far as possible, an 
unreasonable holding of equipment. 

Cars Subject to Rules. —Cars of either railroad 
or private ownership held for or by consignors or 
consignees for loading, unloading, forwarding 
directions, or for any other purpose, are subject 
181 


182 Fundamentals of Transportation 

to these demurrage rules with certain exceptions 
specified in the Tariff. 

What Is Included in Loading and Unloading .— 
Loading includes the furnishing of forwarding 
directions on outbound cars. 

Unloading includes the following requirements: 

1. Surrender of bill of lading on shipments 
billed “to order.” 

2. Payment of lawful freight charges when 
required prior to delivery of the car. 

3. Furnishing of a “turnover” order (an order 
for delivery to another party), after car has been 
placed for delivery and no additional movement 
of the car is made. 

Free Time Allowed. —Forty-eight hours’ (two 
days) free time will be allowed for loading and 
unloading all commodities, except that only 
twenty-four hours’ (one day) free time is allowed 
under the following conditions: 

1. When cars are held for reconsignment, re¬ 
shipment, or in transit on order of consignor, con¬ 
signee or owner. 

When a car is placed for delivery at destination 
a “turnover” which does not involve an additional 
movement of the car is not a reconsignment. 

A reshipment is the making of a new contract 
by which, under a new rate, the original lading, 
without being unloaded, is forwarded in the same 
car to another destination. 


Demurrage and Storage 


183 


2. When cars, destined for delivery to or for 
forwarding by a connecting line, are held under 
tariff regulations for surrender of bill of lading 
on payment of lawful freight charges. 

3. When cars are held in transit and placed for 
inspection or grading. An exception is made on 
grain held in transit subject to Federal or State 
inspection at certain cities specifically named in the 
tariff. 

4. When cars are held to complete loading or 
to partly unload. But, when a car held for un¬ 
loading is partly unloaded and partly re-loaded, 
forty-eight hours’ free time will be allowed for 
the entire transaction. 

5. When cars contain freight in bond for cus¬ 
toms entry and Government inspection. 

Computing Demurrage Time .—In computing 
time, Sundays and legal holidays, but not half¬ 
holidays, will be excluded. When a legal holiday 
falls on Sunday, the following Monday will be 
excluded. Rule 3 thoroughly explains how time 
shall be computed. 

Notification of Arrival of Freight .—Notice of 
arrival of freight shall be sent or given to the 
consignee within twenty-four hours after arrival 
of car, and such notice must contain car initials 
and numbers, point of shipment, contents and, 
if transferred in transit, the initials and number 
of original car. 

When owner requests that original point of 
shipment be omitted on reconsigned cars, this in- 


184 Fundamentals of Transportation 

formation will not be shown on notice of arrival 
at destination. 

When cars are ordered stopped in transit, 
notice shall be sent the consignee upon arrival of 
cars at point of stoppage. 

Delivery of cars upon other-than-public de¬ 
livery tracks, or a written notice sent to consignee 
of readiness to deliver, will constitute notification 
to consignee. 

When any part of the contents of the car has 
been removed by consignee prior to sending notice, 
such removal shall be considered as a notice of 
arrival. 

Refused and Unclaimed Carload Freight .— 
When carload freight is refused, notice of such 
refusal shall, within twenty-four hours thereafter, 
be sent by wire to consignor at his expense. 

When unclaimed perishable carload freight has 
not been disposed of within two days after the 
day on which notice of arrival has been sent con¬ 
signee, notice shall be sent to consignor by wire 
at his expense. When other carload freight is 
unclaimed within five days after the day on which 
notice of arrival has been sent to consignee, a 
notice to that effect shall be sent to consignor at 
his expense. 

Placing Cars for Unloading .—When delivery 
of a car cannot be made to other-than-public de¬ 
livery track or to an industrial interchange track 
(a track owned by an industrial plant performing 


Demurrage and Storage 


185 


switching service for itself) on account of inability 
of consignee to receive it, or because of other con¬ 
ditions attributable to him, the car will be held at 
destination or at the nearest available hold-point. 
A notice to that effect will be sent to the consignee, 
and this will be considered constructive placement. 

When delivery cannot be made on specially des¬ 
ignated public-delivery tracks, because such tracks 
are fully occupied or from other causes beyond the 
control of the carrier, delivery shall be made at 
the nearest available point to consignee, unless 
consignee indicates a preferred available point. 

In the event consignee notified the railroad that 
he refuses to accept delivery at the point named 
in the notice sent in accordance with the next pre¬ 
ceding paragraph, the car will be held awaiting 
opportunity to deliver at the specially designated 
track and Free Time will not begin until the first 
7 A. M. after the day on which notice of place¬ 
ment is sent. 

Cars for Loading .—Cars will be considered 
placed when actually placed or held on orders of 
the consignor. 

On empty cars placed for loading and not used, 
demurrage will be charged from actual or con¬ 
structive placement until released, with no Free 
Time allowance. 

Demurrage Charges .—At the expiration of the 
free time allowed, demurrage charges per car per 
day, or fraction of a day, will be made until the 
car is released. For each of the first four days 


186 Fundamentals of Transportation 

the demurrage charge is $2.00 per day; and for 
each succeeding day the charge is $5.00. 

Track Storage. — At some terminals where 
railroad facilities are limited, in addition to the de¬ 
murrage charge for cars placed on public-delivery 
tracks, there is a track storage charge, but this 
charge must be covered by a lawful tariff. 

Section II 

Demurrage Claims 

When Demurrage Charges Are Not Allowed. 
No demurrage charges are to be collected when 
detention of car occurs through any of the causes 
named in the following paragraphs. Any charges 
assessed or collected under such conditions shall 
be promptly cancelled or refunded by the carrier. 

1. Weather Interference. When the con¬ 
dition of the weather during the prescribed free 
time is such as to make it impossible to employ 
men or teams in loading or unloading, or impos¬ 
sible to place freight in cars or move it from 
cars without serious injury to the freight, the free 
time is extended. This also applies to shipments 
frozen while in transit and to the inability of 
shippers or consignees to load or unload freight 
because of high water or snow-drifts. However, 
this rule does not absolve the consignor or the 
consignee from liability for demurrage, if others 
similarly situated and under the same conditions 
reasonably could and did load or unload cars dur¬ 
ing the same period of time. 


Demurrage and Storage 


187 


2. Bunching, (a) When, by reason of delay 
of carrier in filling orders, cars are placed for 
loading in numbers in excess of daily orders, the 
shipper is allowed such free time for loading as 
he would be entitled to had the cars been placed 
as ordered. 

(b) When, due to the fault of any carrier, cars 
are accumulated and delivered by a railroad in 
numbers in excess of daily shipments, the con¬ 
signee is allowed such free time for unloading as 
he would have been entitled to had the cars been 
delivered in accordance with the daily rate of 
shipment. 

An illustration is as follows: A shipper in 
point A forwards to a consignee at point B five 
cars per day, and the consignee at point B can 
unload the five cars per day when placed for un¬ 
loading. The consignee at B receives no cars 
for three days, but on the fourth day twenty cars 
are accumulated to be placed. No demurrage 
charge could be assessed against the consignee if 
he unloads his daily allotment of five cars, as the 
accumulation of the twenty cars would be what 
is termed “bunching.” 

3. Demand of Overcharge. If the agent 
of a carrier demands payment of transportation 
charges in excess of tariff authority, no demur¬ 
rage can accrue during the period of adjustment. 

4. Delayed or Improper Notice by Car¬ 
rier. If a Notice of Arrival is not properly given 
to consignee, no demurrage charge can be as- 


188 Fundamentals of Transportation 

sessed, provided the fault is with the carrier. If 
a mail notice has been delayed, the postmark on 
the envelope shall be accepted as indicating the 
date of the notice. If a notice is mailed on Sun¬ 
day, a legal holiday, or after 3 P. M. on other 
days (as evidenced by the postmark thereon), the 
consignee is allowed five hours’ additional free 
time, but he must mail or send to the carrier’s 
agent, within the first twenty-four hours of free 
time, written advice as to the actual time notice 
was received. If he fails to take this action no 
additional free time is allowed. 

5. Error of Railroads Preventing De¬ 
livery. If the railroad has made an error in 
placing cars (i.e., placing recent arrivals ahead 
of previous arrivals or similar mistakes), de¬ 
murrage may be assessed only on the basis of the 
amount that would have accrued except for such 
errors. 

6. Delay by United States Customs. 
When shipments are delayed by the United States 
Customs, such additional free time shall be al¬ 
lowed as has been lost through such delay. Goods 
entering the United States from foreign coun¬ 
tries are, as a rule, dutiable and must go through 
the routine of being cleared through the Customs. 
Unless Customs entry is correctly made, delivery 
of the goods will be delayed until all errors and 
omissions are corrected. Freight of this nature 
is termed “Import” freight, and is frequently 
transported by railroads either to interior points 
or across the continent “in bond.” The term 


Demurrage and Storage 


189 


“in bond” means that the goods are under the 
control and ownership of the United States, and 
remain so until cleared from Customs. For con¬ 
venience of importers and to avoid congestion at 
seaports, the Government maintains custom¬ 
houses at many of the large interior cities. Cars 
transporting freight “in bond” are secured with 
Government seals which must be broken only 
by an authorized Government officer at desti¬ 
nation. Delivery cannot be accomplished with¬ 
out the authorization of this Customs Official. 

Average Agreement .—Shippers and receivers 
frequently make an agreement with the carriers, 
whereby the charge for detention of cars for load¬ 
ing or unloading shall be computed on the basis of 
the average time of detention during each 
calendar month. One credit is allowed for each 
car released within the first twenty-four hours of 
free time. After forty-eight hours’ free time, one 
debit per car per day, or fraction of a day, will 
be charged for the first four days. Ninety-six 
hours’ free time is allowed on cars subject to Rule 
8, Section A, Paragraph 2 (see National Car 
Demurrage Rules, Freight Traffic Red Book). 
When a car has accrued four debits, a charge of 
$5.00 per day, or fraction of a day, will be made 
for all subsequent detention including all subse¬ 
quent Sundays and holidays. 

Credits earned on cars held for loading cannot 
be used as an offset for debits accruing on cars 
held for unloading, or vice versa. 


190 Fundamentals of Transportation 

If the credits exceed the debits no payment will 
be made by the railroad on account of such excess 
of credits, nor can the excess credits for one month 
be considered in computing the average detention 
for another month. 

A party who enters an Average Agreement is 
not entitled to cancellation or refund of demur¬ 
rage charges on account of weather interference, 
nor because of bunching unless such bunching is 
caused by strike of carrier’s employes. 

On written notice either party may terminate 
the agreement, which notice becomes effective on 
the first day of the month succeeding that in which 
it is given. 


Section III 

Storage Rules and Charges 

Definition of Storage .—Storage is the charge 
assessed by carriers in accordance with the 
Freight Tariff governing Storage Rules and 
Charges and applies to freight, either carload or 
less-than-carload, unloaded at terminals and held 
after expiration of the Free Time limit. 

Freight Subject to Storage .—Freight received 
for delivery or held to complete a shipment, or 
for forwarding directions, if stored on railroad 
premises is subject to the following storage rules: 

(a) Carload freight held in cars for delivery, 
and subsequently unloaded in or on railroad 
premises, is subject to demurrage rules while in 
cars and to storage rules after it is unloaded. 


Demurrage and Storage 


191 


(b) Freight upon which the free time allowed 
under demurrage rules has expired while in cars, 
and subsequently unloaded in or on railroad 
premises, is subject to storage rules when un¬ 
loaded, without free time allowance. 

Exception. —These rules do not apply to export 
or import freight at the port of export or im¬ 
port; nor to domestic freight from or intended for 
delivery to ocean or lake vessels at the port of 
trans-shipment. 

Notification of Arrival of Shipment .—Notice 
shall be sent consignee by the carrier, in writing 
or as otherwise agreed, within twenty-four hours 
(one day) after arrival of shipments. Such notice 
must specify point of shipment and name of com¬ 
modity. 

Refused or Unclaimed Freight. —Where ship¬ 
ments have been plainly marked with the con¬ 
signor’s name and address, preceded by the word 
“from,” notice of refusal of less-than-carload 
shipments shall immediately be sent to consignor. 

Unclaimed less-than-carload shipments will be 
treated as refused after fifteen calendar days from 
expiration of free time. 

Where consignor requests that notice of un¬ 
claimed or refused shipments be sent by telegraph, 
this may be done only at his expense. 

Free Time Allowed Prior to Storage. —Forty- 
eight hours’ (two days) free time will be allowed 
on all commodities for the removal of inbound 
freight from car or railroad premises, or to com- 


192 Fundamentals of Transportation 

plete a shipment and furnish forwarding direc¬ 
tions for outbound freight. 

Exception .—Additional free time is given to 
consignees of L. C. L. shipments located at in¬ 
terior or at non-railroad points. 

Outbound less-than-carload freight, not accom¬ 
panied by proper shipping directions which will 
permit forwarding on the day received, will be 
subject to storage charges from the first 7 A. M. 
after receipt of the shipment with no free time 
allowance. 

Shipments of less-than-carload freight held to 
complete a shipment, or held for reshipment, will 
be allowed twenty-four hours’ free time. 

Computing Time .—In computing time, Sundays 
and legal holidays will be excluded. Where a 
legal holiday falls on Sunday, the following Mon¬ 
day will be excluded. On inbound freight held 
for removal and on freight held for re-consign¬ 
ment or re-shipment, time will be computed from 
the first 7 A. M. after the day on which notice 
of arrival is sent or given to consignee. 

Charges for Storage on Freight .—Freight held 
on railroad premises in excess of the free time al¬ 
lowed is subject to storage charges as follows: 

(a) Freight, except automobiles or other self- 
propelling vehicles (but not excepting motor¬ 
cycles or bicycle motor wheels), held in or on 
railroad premises in excess of free time allowed, 
will be subject to the following storage charges 


Demurrage and Storage 193 

per day, or at option of carrier may be sent to pub¬ 
lic warehouses: 

For each of the first five days, 1^ cents per 
100 lbs.; for the sixth and each succeeding day, 
3 cents per 100 lbs.; minimum storage charge per 
shipment on freight held beyond free time, five 
(5) days or part thereof, 25 cents; six (6) days 
or more, 50 cents. 

(b) After expiration of free time, automo¬ 
biles or other self-propelling vehicles (except 
motorcycles and bicycle motor wheels) will be 
subject to a storage charge of three and one-half 
(3^) cents per 100 lbs. per day, with a minimum 
charge of $1.00 per machine per day for each of 
the first five (5) days, and $2.20 per machine for 
each succeeding day, or at option of carrier may 
be sent to public warehouses. 

(c) (1) When carload freight is unloaded by 
the carrier for the purpose of releasing needed 
equipment, the storage charge will be the same 
as would have accrued under car Demurrage and 
Track Storage Rules had the freight remained 
in the car. 

(2) When carload freight is unloaded in or 
on railroad premises by or upon request of con¬ 
signee or consignor, the storage charges shall not 
exceed the amount that would have accrued under 
Demurrage and Track Storage Rules had the 
freight remained in the car. 

Claims for Storage Charges .—The same rules 
governing causes for non-collection of demurrage 
charges are applicable to storage charges. 


♦ : /; ; 

























































Chapter 15 

LIGHTERAGE AND SWITCHING 

COLLATERAL READING: In the Freight Traffic Red 
Book—Lighterage and Switching. 

Section I 

Lighterage 

Definition of Lighterage. —In the large ports 
of the United States, such as New York, Boston, 
etc., freight is delivered to vessels or other points 
by boats called lighters, floats, and barges. This 
service is called Lighterage. 

The Means of Lighterage. — (a) There are 
two kinds of lighters; viz., steam lighters (mean¬ 
ing those that are self-propelled) and lighters 
that are towed by tugs. 

(b) Barges are usually covered to protect lad¬ 
ing from the elements, and are towed by tugs. 

(c) Car floats are large flat-bottom boats hav¬ 
ing tracks laid upon them so that, when they dock 
at the float bridges, the tracks connect with the 
railroad tracks and cars are run directly upon the 
floats. These floats carry from eight to twelve 
cars and are towed to the various stations by tugs. 
This service is called “floatage.” 

Free Lighterage. —Within certain limits, all 
commodities (other than prohibited articles which 
are specified in the governing tariff) are entitled 
to lighterage free delivery, when received in car- 
195 


196 Fundamentals of Transportation 

load lots. This term, “lighterage free,” means 
that the rates to or from the harbor city, on ar¬ 
ticles entitled to free lighterage, will include trans¬ 
portation by lighters, barges, or car floats, to or 
from any dock or vessel within the free lighterage 
limits. When freight is lightered to points be¬ 
yond the free delivery limits, a charge is made 
for the service. 

Lighterage or floatage to or from private piers, 
bulkheads or landing places (when accessible by 
floatage equipment) will be performed by the 
carriers if shippers or consignees so arrange. 

When rate does not include free lighterage, an 
additional charge for lighterage is made in ac¬ 
cordance with the rules of the specific tariff. 

Delivery Orders .—Delivery orders and vessel 
permits, limiting the time for delivery, will be 
accepted by carriers only with the understanding 
that delivery will be accomplished with reasonable 
dispatch. 

Wharfage .—Any wharfage charge, or charge 
for berthing of lighters, must be paid by shippers 
or consignees, who must also provide berthing. 
A wharfage charge is usually assessed when 
lighters dock at private bulkheads or private 
piers; also a further charge, called “top wharf¬ 
age,” is frequently made for the privilege of load¬ 
ing and unloading material on a private bulk¬ 
head or pier. When lighters land at public bulk¬ 
heads or piers no wharfage charge is assessed. 

Commodities for Which No Carload Weight 
or Rate Is Provided in the Official Classification. 


Lighterage and Switching 


197 


Commodities (other than prohibited articles) for 
which no carload rate or weight is provided in 
the Official Classification will be accorded free 
lighterage privilege, when loaded to the full stow¬ 
ing capacity of car or when the billed weight of 
the shipment is 30,000 lbs. or more. 

Free lighterage is also extended to some other 
commodities when billed at a weight of 20,000 lbs. 

Except as provided above, a charge in addition 
to the rate will be made for each delivery of do¬ 
mestic or export freight. 

Less-Than-Carload Shipments Received With 
Carload Shipments. —Less-than-carload shipments 
of outbound freight (which is lighterage free 
in carloads) received with a carload or more of 
lighterage free freight from the same shipper at 
the same time will be subject to a charge per 100 
lbs., in addition to the rate. Less-than-carload 
shipments of inbound freight (which is lighterage 
free in carloads) received in the same car with 
a carload or more of lighterage free freight to 
the same consignee will be accorded free light¬ 
erage. 

Part of Carload for Export Delivered for Do - 
mestic Consumption. —If a portion of a carload 
for export is delivered for domestic consumption, 
the entire carload will be charged at the domestic 
carload rate, at minimum carload weight (actual 
if in excess). 

Inbound Freight Requiring More Than One 
Lighterage Delivery. — On carload inbound 


198 Fundamentals of Transportation 

freight, one free domestic lighterage or station de¬ 
livery will be made on each individual consign¬ 
ment on which charges are assessed at the C. L. 
rate, in such quantity as the consignee may direct, 
whether the consignment separately occupies a 
car or is loaded with other consignments in one 
car. There will be an extra charge for any addi¬ 
tional delivery. 

On carload inbound freight for export, two 
free lighterage deliveries will be made of each in¬ 
dividual consignment on which charges are as¬ 
sessed at the carload rate, in such quantity as the 
consignee may direct. There will be an extra 
charge for any additional delivery. When orders 
for delivery of three or more parts of a shipment 
are received, the free deliveries shall attach to 
those of the greatest weight. 

Lighterage Rates on Heavy Articles .—Pieces 
weighing up to three tons each are usually light¬ 
erage free. On pieces weighing over three tons 
there is a charge for lighterage, said charge being 
increased in accordance with the increased weight 
of the pieces. For the purpose of lightering heavy 
pieces weighing over three tons, special equip¬ 
ment is required. Usually “outside” lighters (not 
owned by the carrier) are employed for this pur¬ 
pose. 

Demurrage Charges on Lighters .—When a 
lighter reports at its destination, the shipper or 
owner of the freight, as the case may be, must 
provide a berth. The first 48 hours after the 
time the lighter reports (Sundays and legal holi- 


Lighterage and Switching 


199 


days excepted) shall be deemed “lay days,” with¬ 
out charge; after which demurrage shall accrue 
against shipper or consignee, as the case may be, 
at a rate per day of 24 hours or fraction thereof, 
which must be specified in the tariff, Sundays and 
holidays included. The demurrage charge on 
lighters of ordinary merchandise, in New York 
Harbor, is $20 per day. On lighters handling 
heavy commodities the charge for demurrage is 
considerably higher. 

When a lighter contains more than 200 tons 
from one shipper or from one consignee, an ad¬ 
ditional 24 hours’ free time will be allowed for 
each additional 100 tons, or fraction thereof, in 
excess of 200 tons. 

Allowance for Loading or Unloading Lighters. 
An allowance for actual cost, not to exceed a cer¬ 
tain amount per net or gross ton as rated, may 
be made to consignors or consignees for loading 
or unloading lighterage freight. 

Section II 

Regulations Governing Switching 

Definition of Switching .—Switching is the 
service performed in moving cars from one track 
to another, in what is termed “switching limits.’’ 
This service is divided into three classes as fol¬ 
lows : 

Terminal Switching, 

Intermediate Switching, 

Intra-Terminal Switching. 


200 Fundamentals of Transportation 

Terminal Switching .—Terminal Switching is 
the service performed by a railroad in receiving 
on its tracks, from a connecting line, a loaded car 
and placing it at a designated delivery point for 
the purpose of unloading. 

It also is the service performed by a railroad 
in hauling a loaded car from a point on its own 
road, or on private tracks connecting therewith, 
and delivering it to a connecting line, when said 
car is destined to a point beyond the switching 
limits. 

The entire service thus performed, in each of 
the above instances, must be within the designated 
limits and on a switching charge published in a 
tariff. 

Intermediate Switching .—Intermediate switch¬ 
ing is the service performed by a road in handling 
a car from one railroad to another, the service 
performed being within the designated limits and 
on a switching charge published in a tariff. 

This service is performed at the junctions of 
the various railroads, where cars are en route and 
turned over to the connecting line for transporta¬ 
tion to destination. 

Intra-Terminal Switching. — Intra-Terminal 
switching is the switching movement from one 
place to another on the same railroad within the 
switching limits of one terminal. That is, a car 
is loaded within the switching limits and hauled 
to another point for unloading within the same 
switching limits. 


Lighterage and Switching 


201 


Switching Limits. —The area of a terminal, 
within which switching service is performed under 
switching rules and regulations, is called “switch¬ 
ing limits.” 

When Charges and Rules Apply. —Freight re¬ 
ceived at a point within switching limits of a 
station and delivered to another point within 
switching limits of the same station is subject to 
terminal switching charges, as provided in the 
tariffs applicable. 

Switching charges are assessed on the basis of 
a certain rate per car, as specified in a tariff, and 
are added to the freight charges, unless the rate 
includes the switching service. 

Less-Than-Carload Freight. —Frequentlv car¬ 
riers will handle less-than-carload shipments, in 
switching service, when loaded in the same car; 
the aggregate weights of the shipments being not 
less than a specified weight, usually about 10,000 
pounds. 

Absorption of Charges. —The act of carriers 
in including in their rate, from starting point to 
point of delivery at destination, charges that may 
have been assessed against the freight for switch¬ 
ing service during its transportation, is termed 
“Absorption of Switching Charges.” This action 
is usually taken by carriers in handling traffic be¬ 
tween competitive points, where industries are 
located on the tracks of competitors. 

Railroads operating between competitive points 
are always competing for desirable traffic and in 


202 Fundamentals of Transportation 

order to obtain this traffic they must offer equal 
rates and service. A line desiring to handle the 
traffic of an industry located on the tracks of a 
competitor, at a competitive point, must pay the 
competing line’s switching charge in order to 
equalize the rates and to obtain at least a portion 
of the traffic. 

The switching charge of one railroad is usually 
absorbed in the transportation of another rail¬ 
road, when both lines are competing for traffic 
between the points involved. At terminals reached 
by two or more railroads, cars are often loaded at 
private sidings on the tracks of one railroad, and 
switched to another carrier to be forwarded to 
destination. The carrier performing the trans¬ 
portation service in this instance will usually ab¬ 
sorb the switching charge. 

At destination, the industry to which the freight 
is consigned may be located on a private siding, 
connected with the track of a competitor to the one 
performing the transportation service. In order 
to accomplish delivery, it would be necessary to 
have the car containing the freight switched to 
the competing line, and the charge for this switch¬ 
ing would undoubtedly be absorbed by the carrier 
having the line haul. If the freight is to be trans¬ 
ported by the road with which the siding is con¬ 
nected, there is usually no charge for switching. 

In both of the cases mentioned, the railroad 
having the line haul generally absorbs the switch¬ 
ing charge in its transportation rate; but a 
switching charge must be paid in accordance with 


Lighterage and Switching 


203 


the switching tariff, although this tariff may pro¬ 
vide for the absorption of the switching charge 
of the competing railroad. 

The illustration on page 204 will demonstrate 
the reason for absorption of switching charges: 
A and B are competitive points reached by the 
Southern Railroad and the Northern Railroad. 
At point B industry C is located on a private sid¬ 
ing connected with the tracks of the Northern 
Railroad and in order that the Southern Railroad 
may handle any traffic from point A for industry 
C, it must absorb in its rate the Northern Rail¬ 
road’s switching charges. Also, if it is desired 
to handle any of the shipping of industry C for¬ 
warded to point A, the Southern Railroad would 
have to absorb in its rate the Northern Railroad’s 
switching charges. 

If shippers at either point A or B desire to ship 
to industry D, located on a private siding con¬ 
nected with the tracks of the Southern Railroad, 
switching charges would not be absorbed as there 
would be no competition for this traffic. 

The absorption of the switching charges of 
competitors is of great advantage to shippers. 
For instance, many shippers at point A may be 
located nearer the terminal of the Southern Rail¬ 
road and it would be far more convenient for 
them to deliver their shipments to this terminal. 
Also, the expenses incident to shipping (cartage, 
etc.) would be less. Hence absorption is of 
mutual advantage when it equalizes the rate of 
transportation between competitive points. 


204 Fundamentals of Transportation 



SEE EXPLANATION ON PAGE 203. 
























































Chapter 16 

DIVERSION AND RECONSIGNMENT 

COLLATERAL READING: In the Freight Traffic Red 
Book—Diversion and Reconsignment. 

Section I 

Benefits and Requisites of Diversion 

An Accommodation to the Shipper .—Freight 
in carloads may be diverted or reconsigned on 
carrier’s lines, subject to tariff rules, regulations, 
and charges. When a request is made for diver¬ 
sion or reconsignment, the carrier will make dili¬ 
gent effort to locate the shipment and effect the 
diversion. The carrier will not, however, be re¬ 
sponsible for failure to comply with a request, 
unless such failure is due to the negligence of its 
employes. This privilege is accorded to shippers 
simply for the purpose of accommodation. 

Benefit to Be Derived .—Diversion and recon¬ 
signment are essential to many industries, par¬ 
ticularly those which ship perishable freight, such 
as fruit and vegetables. Bananas are imported 
in steamers; floats containing empty cars are 
placed alongside; the bananas are loaded into the 
cars, which are immediately started for some city 
where there is supposed to be a good market. Be¬ 
fore the cars reach their destination, it may de¬ 
velop that some other city would offer a better 
market; then the shippers resort to the privilege 
205 


206 Fundamentals of Transportation 

of diversion and the cars are sent to the more 
favorable market. Other commodities are also 
similarly handled in accordance with tariff pro¬ 
visions. 

Defining the Terms .—While diversion and re¬ 
consignment may be strictly interpreted to mean 
separate acts, generally the tariffs of carriers make 
no distinction in their diversion and reconsign¬ 
ment rules, for they give the words the same 
meaning. 

According to the carriers’ definitions the term 
“diversion” or “reconsignment” means: 

(a) A change in the name of the consignee, 

(b) A change in the name of the consignor, 

(c) A change in destination, 

(d) A change in route at the request of con¬ 
signor, consignee, or owner, 

(e) Any other instructions given by con¬ 
signor, consignee, or owner necessary to effect 
delivery, which requires a change in billing or an 
additional movement of the car, or both. 

How Requests for Diversion Are Made .—A 
request for diversion or reconsignment should be 
filed with the agent at the point from which the 
shipment was forwarded, or with a traffic execu¬ 
tive of the transportation line having the ship¬ 
ment in its possession. If the shipment has 
reached its destination, the request may be filed 
with the agent there. 


Diversion and Reconsignment 207 

The request for diversion or reconsignment 
should contain complete information and specific 
instructions as to the action desired. Some car¬ 
riers have regulations requiring that the original 
bill of lading shall be surrendered in exchange for 
another. Under a recent ruling, the surrender 
is temporary and only for the making of a nota¬ 
tion showing the reconsignment. 

Prompt Action Necessary, — The shipper 
should be thoroughly familiar with the carrier’s 
tariffs and regulations governing diversion or re¬ 
consignment. In order that the services may be 
performed by the carriers without a heavy ex¬ 
pense to the shipper, prompt action on his part 
is necessary, especially in cases of change of des¬ 
tination to one nearer the point from which the 
shipment was forwarded. 

Conditions on Which Diversion Is Made .— 
The services are usually subject to the following 
conditions: 

(a) That shipments have not broken bulk. 

(b) That shipments cannot be diverted or re¬ 
consigned to a point against which an embargo 
is in force. Shipments made under authorized 
permits are not subject to this condition. 

(c) On “Straight” consignments, the original 
bill of lading should be surrendered temporarily 
for the purpose of having notation made thereon 
as to diversion or reconsignment or other proof 
of ownership established. On shipments con¬ 
signed “to order,” the original bill of lading 


208 Fundamentals of Transportation 

should be presented for endorsement of the re¬ 
quested diversion, or a satisfactory bond of in¬ 
demnity must be executed in lieu thereof. 

(d) Requests must be made or confirmed in 
writing. 

(e) All charges accruing must be prepaid or 
guaranteed, to the satisfaction of the carrier, by 
the party requesting the diversion. 

Section II 

The Expense of Diversion and 
Reconsignment 

Charges for Reconsignment .—A reconsignment 
entails an expense on the carrier, so that usually 
a charge is made for the service. However, the 
rules of carriers may provide for this service 
without charge to the shipper or at a rate con¬ 
sistent with the service performed. 

fVhen Charge JVill Not Be Made .—The car¬ 
riers usually do not charge for a single diversion 
under the following circumstances: 

1. When the order is received at initial bill¬ 
ing point before the car leaves, provided the 
change involves no extra movement of the car. 

2. When a car is placed for delivery at des¬ 
tination, and an order for delivery of the con¬ 
tents thereof to other than the billed consignee 
is presented to and accepted by the agent of the 
carrier at destination; no change being involved 


Diversion and Reconsignment 209 

in billing records, nor additional movement of 
car. 

3. When a change in route is made necessary 
by an embargo. 

Freight Rate Applicable .—Diversion rules and 
charges usually apply where shipments are han¬ 
dled at local rates, joint rates, or combina¬ 
tion of intermediate rates. The through rate, 
from the point of origin via the diversion point 
to final destination, in effect on date of shipment, 
is the rate that must be applied. If the rate from 
original point of shipment to final destination is 
not applicable through the point at which the car 
is diverted, the tariff rates in effect to and from 
the diversion point will apply, plus diversion 
charges. 

Demurrage on Reconsignments. — Freight 
stopped, diverted, or reforwarded will, in addi¬ 
tion to the diversion charge, be subject to demur¬ 
rage and track storage charges in accordance with 
the tariff in effect at point where this stopping, 
diversion, or reforwarding is accomplished. 
Switching charges also will be additional. 

One Change in Destination Permissible .— 
Usually only one change in destination of a car 
will be permitted by the carrier, after it leaves 
the initial billing point. If a subsequent change 
is requested, necessitating movement of the car, 
the consignment will be treated as a re-shipment 
from point of re-forwarding, and will be charged 
at the tariff rate therefrom, plus diversion charge. 


210 Fundamentals of Transportation 

If a car is stopped short of billed destination 
after it has had one diversion, charges will be 
made on the basis of the tariff rates to and from 
the point at which the first diversion was accom¬ 
plished, plus a specified charge, in addition to the 
other diversion charges previously accrued. 

Diversion Beyond Rails of Carrier .—When 
diversion is requested after shipment has passed 
out of the possession of the initial carrier, or 
when a request is received too late for the initial 
carrier to effect the change desired, such request 
will be transmitted to the direct connecting car¬ 
rier to which shipment was delivered. The re¬ 
sponsibility of the initial carrier will then end, 
and the shipment will be subject to the tariff rules 
of the carrier on whose rails the diversion is ac¬ 
complished. 

Charges for Stopping in Transit .—If a car is 
stopped for orders, on request of the owner, 
for the purpose of delivery, diversion, or re-for- 
warding prior to arrival at original billed destina¬ 
tion, the tariff charge will be made for such service 
and the point where the car is stopped will be 
considered the destination of the freight. 

Change of Destination on Orders Given Before 
Arrival .—If orders for diversion are placed with 
local freight agent at billed destination in time to 
permit instructions being given to yard employes 
prior to arrival, a nominal charge will be made 
for such service. 


Diversion and Reconsignment 211 

Diversion to Points Outside Switching Limits 
Before Placement. —If a car is diverted or re¬ 
forwarded on orders placed with local freight 
agent after arrival of car at original destination, 
but before placement for unloading, the regular 
tariff diversion charge will be made if car is divert¬ 
ed or re-forwarded to a point outside of the 
switching limits. 

Diversion to Points Within Switching Limits 
Before Placement. —A single change in the name 
of consignor or consignee, or a single change in 
the designation of the place of delivery at desti¬ 
nation will be allowed: 

(a) Without charge if order is received by 
local freight agent at destination in time to permit 
instructions to be given to yard employes prior to 
arrival of car at destination. 

(b) At a nominal charge if such order is re¬ 
ceived in time to permit instructions to be given 
yard employes between arrival of car at destina¬ 
tion and the expiration of twenty-four hours after 
the first 7 A. M. after the day on which notice 
of arrival is sent to consignee. 

(c) At the regular tariff charge if after arrival 
at destination such order is not received in time 
to permit instructions to be given to yard em¬ 
ployes prior to the expiration of time as stated 
in paragraph (b). 

Diversion to Points Outside Switching Limits 
After Placement. —After a car has been placed 
for unloading at original destination and is re-for- 


212 Fundamentals of Transportation 

warded therefrom without being unloaded to a 
point outside of the switching limits, it will be 
subject to the published rates to and from the 
point of reconsignment, plus the tariff reconsign¬ 
ment charge, except that in no case shall the total 
charge be less than the charge based on a through 
rate from point of origin to final destination plus 
the tariff reconsignment charge. 

Where all charges have been paid to original 
destination and delivery accepted, and a new bill 
of lading (not an Exchange bill of lading) issued 
to the new destination on the basis of local rate 
from the re-forwarding point, and without any 
carrier or agent of the carrier acting for the 
shipper, the transaction will not be considered as 
a diversion and no diversion charge will be 
assessed. 

Diversion to Points Within Switching Limits 
After Placement .—Cars that have been placed for 
unloading and which are subsequently re-forward¬ 
ed without being unloaded to a point within the 
switching limits of a billed destination, will not be 
subject to a diversion charge, but will be subject 
to the rate or charge for local movement in ad¬ 
dition to the rate from point of origin to billed 
destination. 

“Order-Notify” Shipments Held for Surrender 
of Bill of Lading at Destination .—Except on cars 
consigned to or ordered for delivery on public de¬ 
livery tracks, shipments covered on “order” bills 
of lading placed on hold tracks and held only for 


Diversion and Reconsignment 213 

surrender of bill of lading and necessitating subse¬ 
quent movement of the car to place of delivery, 
will be subject to the following: 

(a) No charge will be made if bill of lading is 
surrendered to local freight agent at destination 
or indemnity bond executed in lieu thereof, or 
other satisfactory assurance given carrier in time 
to permit instructions to move the car to be given 
to yard employes prior to the expiration of 
twenty-four hours after the first 7 A. M. after 
the day on which notice of arrival is sent to con¬ 
signee. 

An indemnity bond or other satisfactory assur¬ 
ance in lieu of the original bill of lading covering 
an “order” shipment will not be accepted except 
upon certification by the claimant of the shipment 
that the original bill of lading is not available; and 
where bond is executed a condition of the same 
shall be that the bill of lading will be obtained and 
surrendered immediately upon receipt of advice of 
the party executing the same that the bill of lad¬ 
ing is available. 

(b) Regular tariff diversion charge per car 
will be made if bill of lading is not surrendered 
to local freight agent or indemnity bond executed 
in lieu thereof in time to permit instructions to 
remove the car to be given yard employes prior 
to the expiration of the time specified in para- 
graph (a). 

Diversion in Transit .—As the term implies, 
Diversion in Transit means a diversion or recon- 


214 Fundamentals of Transportation 

signment between the original point of shipment 
and the final destination as originally waybilled. 
Frequently rules of carriers provide for a privi¬ 
lege of this kind, even after arrival at a terminal 
served by a terminal yard, prior to the time when 
car is placed for delivery at the original billed 
destination. A nominal charge per car is usually 
made for this service. 

Charge for Transfers .—When the destination 
or route is changed, for specific reasons, and the 
car containing the shipment is forwarded to the 
new destination or via a new route and it is neces¬ 
sary to transfer the shipment to another car, 
charge for such transfer is usually assessed 
against the shipper. 


READING ASSIGNMENT No. 1 

The 

Story of Transportation 

By 

F. T. BENTLEY 


F. T. BENTLEY 

Traffic Manager, Illinois Steel Company 
HE traffic career of F. T. Bentley be- 



gan in the year 1885 when he be¬ 
came a railroad clerk in Chicago. Prior 
to that time his experiences had included 
work as a farm hand, ranch hand, logging 
camp worker, gold miner, prospector, and 
big game hunter. But until he entered the 
transportation game he had not, so to 
speak, struck his gait. 

After four years of service as a railroad 
clerk, he rose to be an official of the com¬ 
pany. Then, from 1894 to 1899 he was 
traffic manager for the Consolidated Steel 
and Wire Company and its successor, the 
American Steel and Wire Company of 
Illinois. 

For the past twenty-two years Mr. 
Bentley has been traffic manager for the 
Illinois Steel Company and affiliated corpo¬ 
rations, as well as western traffic manager 
for the Universal Portland Cement Com¬ 
pany. His further experiences in traffic 
matters include a charter membership in 
the National Industrial Traffic League, 
and service on its committees. During the 
war Mr. Bentley served on the Trans¬ 
portation Committee of the American 
Iron and Steel Institute, in coordinating 
the war activities of the industry. 



THE STORY OF TRANSPORTATION 
and 

THE PRICE OF THE JOB AHEAD 


FTER school days are over, the first problem 



which confronts a young man is: “What line 
of endeavor shall I follow as a life career?” Is 
the profession of traffic and transportation one 
which should be considered favorably as giving 
equal opportunities with other professions or lines 
of business? 

Husbandry and transportation are the two old¬ 
est businesses of humanity and they are also the 
two basic businesses of the world. Without pro¬ 
duction, and afterwards transportation to move 
the commodities produced, the world could not 
continue to move forward in social, industrial, 
and intellectual life. Transportation is the chain 
that binds together men, nations, and races. 

The first known transportation occurred when 
Adam was forced to move from the Garden of 
Eden and was politely, but firmly, told that in 
the future he must exist by his own exertions and 
the sweat of his brow. 

The prehistoric man who first conceived the 
bright idea of breaking in animals as beasts of 
burden to transport commodities and persons, 
was one of the greatest early geniuses ever de¬ 
veloped; and the man who, first watching a mud- 
turtle sitting on a log, floating down a stream, 
conceived the idea of climbing onto the log him¬ 
self to cross the stream to a heretofore unattain- 


able land, was another genius; and probably after 
trying this adventure a few times had his legs 
bitten off by some marine monster. 

The man who conceived the idea of hollowing 
out a log with stone implements and the man who, 
ages later, used fire for the same purpose were 
the primitive geniuses in boat making. Probably 
several generations of men propelled their crude 
boats with small limbs of trees, as nature fash¬ 
ioned them, until another genius evolved the idea 
of hewing the limb into a roughly shaped, flat¬ 
sided paddle, thereby increasing the speed of 
transportation by water. 

After these great achievements, but little prog¬ 
ress apparently was made for thousands of years 
until another genius discovered that, by putting 
a keel on his canoe, he could guide it more ac¬ 
curately and would not be at the mercy of the 
winds and tides. The next great achievement in 
transportation was the discovery that sails could 
be used and so manipulated as to enable a vessel 
to follow its course against adverse winds and 
currents. Then the cities of the Orient began to 
ship their products to each other via sailing ships 
of diminutive size, and the day of the maritime 
adventurer was at hand. 

The Phoenecians, who sailed from ancient Tyre 
on the east coast of the Mediterranean, were the 
heroes of their time. They passed out through 
the pillars of Hercules and across the stormy 
waters of the Bay of Biscay to the far shores of 
ancient Britain, to obtain cargoes of tin for use 
as an alloy in making bronze implements and 
weapons. The great adventurers of their day: 

2 


King Solomon, who sent his galleys through the 
Red Sea and down the coast of Africa to ancient 
Ophir for gold to build the temple; the ancient 
Norsemen, who left their havens on the shores 
of the Baltic and sailed unknown seas to discover 
Iceland, Labrador, and New England; Christo¬ 
pher Columbus, who sailed from Spain into the 
unknown West, not knowing when his ships would 
fall off the earth, to discover a new world—these 
all were pioneers in transportation and in open¬ 
ing the way for trade. They made it easier to 
procure the otherwise unattainable, and whetted 
the appetite of man for more luxuries and a 
greater variety of commodities. 

Queens Isabella of Spain and Elizabeth of 
England—living in palaces with sand and rushes 
for carpets, eating from their fingers because 
forks were not yet invented, and carrying their 
own knives for use at the table—learned to de¬ 
sire greater comforts and luxuries, and this urge 
caused them to finance adventurous sailors to dis¬ 
cover new lands and to bring back new and strange 
things. 

The early mariner usually owned his ship, 
loaded it with his own trading goods, and manned 
it with sailors who had to protect themselves 
against pirates, savages, and even civilized en¬ 
emies. If the owner did not captain his ship, a 
supercargo was placed in charge of the goods 
with which to barter for the commodities of 
other countries—he was the ancestor of the mod¬ 
ern ship’s purser. 

A forerunner of the modern bill of lading now 
came into use, in which the master of the ves- 
3 


sel receipted to the owner of the goods and agreed 
to transport them to destination safely, barring 
the perils of the sea, the acts of God, interfer¬ 
ence by a public enemy, or an inherent fault in 
the goods themselves. These stipulations are 
still the basis of the present bill of lading. 

Our forefathers landed on this continent in 
sailing ships and settled along the ocean shore or 
up the rivers as far as the head of navigation, 
because the ship and the horse were the only 
means of transportation; and civilization had 
reached such a point that man was not content to 
live except where he could be in close touch with 
his neighbors and interchange commodities with 
them. 

The stage-coach and wagon were the means 
used by our ancestors for transportation, and 
the drivers went armed with blunderbuss and 
pistol to protect the goods entrusted to their care. 

The Steam-Horse on Steel Roads 

A GREAT forward movement began with the 
■ invention of the steam-engine and the ex¬ 
pansion which it gave to transportation both by 
sea and by land. The first railroad in this coun¬ 
try was built on the principle of the wagon roads. 
That is to say, the company built the roadbed, laid 
down the rails, and held it out for hire to who¬ 
ever would furnish the vehicle and the horse, 
who must drag the vehicle over the tracks. Re¬ 
lay Station, at Baltimore, was so named because 
that was where the horses were changed. 

But even when steam locomotives supplanted 
horses for hauling cars, the speed of travel was 
4 


slow compared with present day speed. For ex¬ 
ample: In 1844, the writer’s grandmother and 
her two children started from Louisville, Ken¬ 
tucky, to visit her parents in Boston, the home 
she had not seen since prior to her marriage. The 
little party took a steamboat up the Ohio River 
to Portsmouth, Ohio, making the journey in three 
days. From there they transferred to a fast pas¬ 
senger canal boat on the then existing canal, from 
Portsmouth to Cleveland, Ohio. They made this 
passage quickly in seven days. Transferring 
there to a paddle-side-wheel steamboat they 
safely reached the city of Buffalo, intending to 
take the Erie Canal from Buffalo to Albany, 
N. Y. 

Upon arrival at Buffalo they learned, for the 
first time, that there was a railroad running to 
Rochester—sixty-eight miles east. With con¬ 
siderable fear and trepidation they decided to risk 
themselves on this new-fangled contraption, and 
made the journey to Rochester, N. Y., in six 
hours—a speed of a little more than eleven miles 
an hour. At first they were extremely frightened, 
but gradually became used to the experience and 
felt safer when they learned that, under the laws 
of the State of New York, when the engineer 
of the train saw a horse he had to stop his loco¬ 
motive, so as to prevent a collision or to avoid 
scaring the horse and causing it to run away. 

After staying all night at Rochester, they found 
a second railroad running to Syracuse. Having 
had good luck with their initial experience, they 
safely traveled over this road to Syracuse, where 
they remained over night. Here they found a 
5 


third railroad running to Utica. Being, by this 
time, rather pleased with fast transportation, 
they took the third railroad for Utica, and the 
next day found a fourth road, which carried them 
safely to Albany. 

Working Toward Carrier Efficiency 

TT is worthy of note that, a few years later, 
-*■ 1853, these four small disjointed roads, re¬ 
ferred to in the preceding paragraphs, were con¬ 
solidated into the present New York Central 
Railroad. For the charter rights granted these 
railways, they agreed to abide by the rules, laws, 
and regulations of the State of New York and 
were never to charge more than 2 cents a mile 
for passenger fares. In view of the fact that 
the United States Railroad Administration and 
the Interstate Commerce Commission have raised 
all passenger fares to 3.6 cents per mile, it is in¬ 
teresting to follow the question as to whether 
the New York Central must disregard the State’s 
order for a two-cent fare or charge, under the 
Federal orders, 3.6 cents per mile. This case is 
now in litigation before the Supreme Court of the 
United States. 

It was about 1853, also, that the Province of 
Nova Scotia, Canada, built a railroad into Hali¬ 
fax, and if a farmer wanted to take his produce 
to the town he paid his fare and the railroad 
hauled his commodity free. This was the first 
government-owned road in Canada, and formed 
the nucleus of the present Canadian National 
Railways, which are state owned and controlled. 
It is an interesting fact that from the date of its 
6 


completion to the present time this government- 
owned railroad has never earned a dividend. 

Rapid transportation in the United States, as 
we reckon it today, is comparatively a new thing. 
As late as 1868, a traveler from New Jersey, or 
west, bound for up-state New York, would cross 
the Hudson River on a ferry to New York City 
and board the waiting coaches at the Chambers 
Street “Depot.” At leaving time, four horses 
were attached to each coach and they were drawn 
through the city up to the Thirtieth Street Sta¬ 
tion. Here the little bulge-stacked wheezing loco¬ 
motive was attached, and the train proceeded on 
up to Albany, sometimes at the rate of 30 miles 
an hour! 

Since those days, transportation has moved 
forward by leaps and bounds. The writer can 
remember the old Lake Shore and Michigan 
Southern 16,000-lb. capacity freight car which 
had only four wheels. He can remember when 
a traveler over the Erie Railroad had to change 
cars at Marion, Ohio, because part of the line had 
a wider-than-standard gauge. He can remember 
the old Illinois Central box car which was built 
so that when it was desirable to forward one at 
Cairo, the body of the car was lifted up, the trucks 
were taken out, and other trucks of the gauge of 
the line on the other side of the river were sub¬ 
stituted, because the gauge of the roads north 
and south of the Ohio river was not the same. 
Compare these with the modern 120-ton freight 
car. 


7 


The Widening Horizon for Transportation 

H AVE the carriers reached their maximum 
now? Has the transportation world been 
conquered? Is there anything more to look for¬ 
ward to if your decision is to take up transporta¬ 
tion as a life work? 

I answer, that transportation is yet in its in¬ 
fancy: the new worlds to be conquered are greater 
than those which we have reviewed. Outside of 
this country, think of the countries where trans¬ 
portation, as we know it today, has not yet been 
established. Africa, South America, Asia, and 
Eastern Europe have scarcely started to develop 
their transportation systems. 

Ahead of us in this country are new inventions, 
new improvements, electrification, aerial trans¬ 
portation; so that, if you look forward one hun¬ 
dred years and imagine transportation facilities 
then, you will probably agree that at this time we 
are still in the dark ages of transportation. 

Is the government going to take over our trans¬ 
portation lines, smother their efficiency with offi¬ 
cial red tape, and make the transportation em¬ 
ployes merely cogs in the existing political ma¬ 
chine? 

I believe that the answer is, NO! 

There was danger of this some years ago, for 
other countries had tried the experiment. New 
Zealand, Australia, Canada, France, Germany, 
Belgium, Italy, and other nationalities have tried 
the experiment of government ownership of 
transportation; but the results are far from satis¬ 
factory. It takes private capital, personal push, 
and the selfish urge of personal achievement to 
8 


keep up the march of progress, and the country 
which recognizes this and leaves the initiative in 
the hands of citizens will always have the best 
transportation facilities and the greatest mileage. 
The country having the most and the best trans¬ 
portation will always be most modern, most en¬ 
lightened, and most prosperous, because the easy 
and cheap exchange of commodities increases the 
demands of the people for greater varieties of 
articles and so promotes the extension of com¬ 
merce. 

Show me the country with the greatest amount 
of efficient transportation and I will show you the 
country which is the most advanced and the most 
prosperous. The most backward countries, from 
a transportation standpoint, are the most back¬ 
ward in civilization and enlightenment. 

The communistic policy of the present Russian 
government, which destroys the instinct for the 
acquirement of property, has resulted in decreas¬ 
ing production and in breaking down its transpor¬ 
tation system. Russia, and its government, is 
dying as its transportation facilities decay, and 
millions of Russians will starve and die for want 
of adequate transportation. 

Transportation’s Call for High Caliber Men 

T HE transportation field continues to be one 
of the basic interests of human life and of¬ 
fers to the worthy as much inducement as possibly 
any other pursuit. The complexities of modern 
transportation have opened, in recent years, a 
new line of endeavor known as commercial Traffic 
Management. 


9 


What of the traffic manager, his duties and his 
value? It is a comparatively new profession and 
is mostly filled from the ranks of railroad-trained 
men. But the commercial traffic manager must 
have a wider knowledge and a wider vision than 
the average railway employe. His functions are 
as varied as the business of his employer. 

Is a new factory to be located? The industrial 
traffic manager must look over the field. Know¬ 
ing the raw materials which his company will re¬ 
quire, he will he able to point out the places where 
these raw materials may be assembled at the low¬ 
est aggregate transportation costs. 

Is the purchasing agent looking for an article? 
After locating the several places where it may be 
secured the industrial traffic manager shows which 
is the cheapest point for buying the goods, where 
both cost and transportation are considered. 

It is the traffic manager who looks after the car 
supply to move the product after it is made. It 
is his business to keep his sales department posted 
as to competitors’ transportation costs, as well as 
his own, to the point where the sale is to be made. 

Is there congestion on the railroads? The 
traffic manager must know how to trace the car 
and get it through to the customer promptly. 

Is the shipment lost or damaged in transit? 
The traffic manager’s knowledge is called in to 
find the remedy as to what shall be done under the 
given circumstances. If the shipment is refused 
at destination or held en route, because of cancel¬ 
lation of the order or failure of the buyer, the 
traffic manager is on the job to get proper and 
quick disposition with minimum loss. Is the ship- 
10 


ment overcharged? The traffic manager must see 
that the claim is properly made and collected. Is 
the classification of his commodities wrong? Are 
the rates from his shipping points poorly ad¬ 
justed? It is the duty of the traffic manager to 
take up with the carriers these irregularities and 
secure right adjustment. 

Are transportation laws faulty? He should 
assist in a campaign of education to have them 
amended. 

These are only some of the many duties which 
the industrial traffic manager is called upon to per¬ 
form. Today he has become one of the main 
cogs in the industrial machine of commerce. 

The Price of the Job Ahead 

T HE question will probably be asked: “If I 
decide to make transportation my vocation, 
how shall I go about it to become a success?” 

In ordinary times almost any bright young man 
can get a job with a railroad. He will be put at 
a desk and must work at one thing all day long. 
If he works by the clock only, to earn his salary, 
he will probably never be more than a clerk. If 
he has the urge of ambition, the “stick-to-it-ive¬ 
ness,” and the necessary will-power, he will attain 
a fair measure of success, because he will not be 
satisfied to work on that desk month in and month 
out. He will be inquiring as to why he is doing 
the work which he does and where it fits in with 
other parts of the transportation machine; and 
he will begin to study, think, and read, and pos¬ 
sibly will attend some school where the principles 
of transportation are taught. 

11 


If he will do his work well, if he will do his 
work better than the average, and will do more 
work than the average while he is thinking and 
studying, he will attract the notice of his supe¬ 
riors and will find himself in line for promotion 
when he least expects it. The key to his success is 
the fact that he is doing more work and better 
work than the average man is willing to do; and 
accurate, organized, continuous work is the only 
royal road to success. 

The average industrial traffic manager gradu¬ 
ates into his commercial job from the ranks of the 
railroad where he has learned transportation; 
and a good industrial traffic manager has as many 
opportunities for advancement in his commercial 
organization as the railroad employe has in the 
railroad organization. There is room at the top, 
but the successful aspirant reaches it by climbing 
over the dead timber of the less forceful, less am¬ 
bitious, and less efficient men whom he finds on 
his road. 

A man must pay for attainment. We have 
seen how that the duties of the traffic manager 
are allied and interwoven with the work of the 
other departments necessary to the conduct of any 
large business. To cooperate intelligently with 
the activities of the other departments, the good 
traffic manager must be fairly well grounded in 
all subjects which he, as an executive sitting in 
meeting with other executives of a large corpora¬ 
tion, will be called upon to discuss. Accounting, 
auditing, banking, business law, corporation 
finance, correspondence, economics, industrial re¬ 
lationships, management, marketing, organiza- 
12 


tion, production,—all these should be familiar to 
the traffic manager. By this, it is not meant to 
say that, in order to be a good traffic manager, a 
man must thoroughly understand all these sub¬ 
jects: that would be well beyond the scope of 
the average. But to be conversant with the sub¬ 
jects, to understand perfectly, as an executive, all 
that takes place in the operation of the business— 
this is essential. 

Nor can a business man afford to be ignorant 
of those fundamental principles on which sound 
business practice is based. They are elucidated in 
standard books on the subject; and in order to 
keep in step with progressive business, the em¬ 
bryo, as well as the full-fledged traffic manager, 
must read and read and read. It is one of the 
prices that he must pay for the job. It is simply 
a question of understanding the underlying princi¬ 
ples of business; then, no matter how the prac¬ 
tice of these principles may change with the times, 
the results of the application of the principles 
never change. For illustration: It used to require 
from two months to two years to tan a hide with 
oak bark: now, it requires only from two to six 
days to tan leather with chrome. The principle is 
the same—changing rawhide into serviceable 
leather; and the result is the same—workable and 
wearable leather. Only the method of utilizing 
the principle to attain the result, has changed. 
Hence, the thing for you, as a traffic manager, to 
do, is to get your principles straight. Learn the 
laws of business and then, by keeping abreast of 
the needs of the times, fashion the best methods 
for getting the quickest and most satisfying results. 

13 


Human Action, the Source of All 
Business Practice 

I N the learning of business principles, you are 
getting back to the sources of human action; 
for all business practices are the outgrowth of 
human action. Man himself is even more com¬ 
plicated than the business he has constructed. 
Which brings us to the study of men, than which 
there is no study more important for the traffic 
manager as well as for any other successful busi¬ 
ness man. In the study of men, it is well to begin 
with yourself. This will not prove an altogether 
easy or pleasant thing to do, for in each of us 
there is so much that could well be eliminated or 
improved. You may feel, indeed, that the more 
you know of yourself the better you like other 
people. Yet it is necessary that you be absolutely 
honest in your appraisal of yourself, of your 
knowledge, of your ignorances, of your strong 
points, and of your weaknesses. 

It is another price you must pay for the job 
ahead. 

This does not mean, however, that a man is to 
engage in any morbid introspection and worry 
about his shortcomings; but simply that out of this 
self-study and analysis he may obtain those things 
needful for the freedom, the development, the 
expansion, and the utilization of his potential 
powers. 

The method of procedure should be about as 
follows: 

First: To find out what his powers are. 

Second: To determine which powers are neces¬ 
sary to the achievement of his desires. 

14 


Third: To ascertain the best way to bring those 
necessary powers up to the highest point of 
utility. 

Fourth: Then actually to use those powers in¬ 
telligently and constructively. 

A traffic man who does these four things must, 
under the law of his own life, achieve a distinct 
success in his profession. 

Every normal man is the repository of unused 
energy and power. Yet the mere possession of 
these powers is a vastly different thing trom their 
use. The thing necessary for a degree of success 
is the translation of those passive powers into 
active powers, through the mediums which are 
possessed by every normal man; viz., thought, 
feeling> and will. In other words, your power as 
a successful traffic manager is conditioned by the 
degree of perfection of your physical body, the 
knowledge which you have in your memory for 
use in thinking, and the reliability of your moral 
faculties in directing thought into activity. 

The Measure of Your Success in Terms of 
Capacity, Ability, and Efficiency 

W HAT is your capacity for attainment? 

What is your ability to accomplish? How 
much of your ability is being translated into effi¬ 
ciency? For capacity, ability and efficiency are the 
terms of man power in which your accomplish¬ 
ments are reckoned. 

Capacity is your latent and unfathomed power 
to acquire, to receive, to take in. It is the power 
to absorb and receive accurate impressions and 
images; the power to apprehend the content of 
15 


the mind. Ability is the power to do, to accom¬ 
plish, to bring out and use the stored up power 
of one’s capacity. It is also the power to get 
others to do things. Ability is that attribute of 
the mind which renders a man capable of pro¬ 
ducing results. Efficiency is power in action; it 
is ability put to use promptly, in the best way and 
at the least expense of time and effort. 

To illustrate: A boiler is rated at 150 horse¬ 
power. That is its capacity to receive a fixed 
amount of water and fuel and, all things being 
equal, to produce steam sufficient to make 150 
horsepower. But suppose, on account of a de¬ 
fect in the draft or elsewhere, the most steam 
that can be produced is 125 horsepower. Then 
the boiler’s ability is 125 horsepower, which is 
83.33 per cent of its capacity. Suppose, again, 
that only 80 horsepower is used to drive the ma¬ 
chinery. That 80 would be the efficiency of the 
boiler, which is 64 per cent of its ability and 53.33 
per cent of its capacity. 

So, in the last analysis, it is the efficiency which 
you develop out of your ability that will deter¬ 
mine the measure of your success as a traffic 
manager. 

The price, therefore, which you pay for the 
job ahead and for holding down the job is not to 
be measured in terms of money, but by such ex¬ 
periences and knowledge as make up ability, 
which is then translated into efficiency in render¬ 
ing useful service to mankind. 


16 


READING ASSIGNMENT No. 2 

The Field of the Traffic 
Manager 


By 

GEORGE BURT ZIMMERMAN 


GEORGE BURT ZIMMERMAN 

Secretary and General Manager of the 
Columbia Refining Company 

W HEN George Burt Zimmerman 
graduated from Ohio Northern 
University in 1905, he took up the study 
of law and is registered in Ohio as a prac¬ 
ticing attorney. But the call of business 
was strong, so he soon entered the employ 
of the National Refining Company, Cleve¬ 
land, and shortly rose to be traffic man¬ 
ager. In supervising the movement of 
this company’s products in its many tank 
cars, Mr. Zimmerman came into close 
touch with the Interstate Commerce Com¬ 
mission, and gained intimate knowledge 
of its proceedings. 

Later, resigning his position with the 
National Refining Company, he became 
secretary and general manager of the Co¬ 
lumbia Refining Company of Cleveland, 
which position he now holds. 

Mr. Zimmerman’s long experience in 
traffic matters has enabled him, as instruc¬ 
tor in the Traffic School of the Cleveland 
School of Technology, to be instrumental 
in the training of more than two hundred 
traffic men. The mature and seasoned 
advice which he is giving to the students 
of this course merits most careful con¬ 
sideration. 



THE FIELD OF THE TRAFFIC 
MANAGER 


/ T A HE LIVING, pulsating, net-work of rail- 
roads, highways, canals, and shipping routes, 
that engirdle the globe today, makes up the cir¬ 
culatory system—the veins and arteries—of our 
modern social and economic order. This entire 
net-work carrying stupendous quantities of mer¬ 
chandise to the various world markets—from 
New York to San Francisco, from London to 
Singapore, from Sydney to the Argentine—is the 
field of the traffic manager. 

His responsibility as manager of the traffic de¬ 
partment of a business or industrial organization 
is many sided and unique. His purpose is to se¬ 
cure the greatest material benefits to his organiza¬ 
tion and to its customers. This is accomplished 
mainly by securing the lowest lawful rates on ship¬ 
ments via the shortest and best routes. He thus 
cooperates with the sales department by enabling 
it to name the exact cost to the trade for landing 
the goods at their door. Also, this cooperation 
enables the buyers to figure far more intelligently 
on the cost price of goods purchased. In fact, the 
traffic department is interlocked with every 
branch of an industry. The profits of the traffic 
department may not be readily discernible, but its 
effect on the business as a whole is extremely valu¬ 
able, and if properly administered will show an 
economic profit equal to any other department. 


1 


Traffic Management Demands High Ability 

TT IS hackneyed but nevertheless a true saying 
that Industry, today as never before, demands 
trained men; so if any man desires to get into 
this class of fully equipped men, it is necessary for 
him to study, and study hard. This is especially 
true of traffic: the surest way to learn it is to 
study it—to study the experiences of those men 
(not one but many) who have gained knowledge 
by years of service in transportation. The sales 
manager for one of this country’s largest cor¬ 
porations once remarked: “If a man should tell 
me he had had twenty years’ experience as a book¬ 
keeper, I might regard his experience as a liability 
rather than an asset, for a man’s knowledge 
gained from other men’s experiences may be more 
valuable than the knowledge gathered through 
his own limited personal experience.” Indeed, all 
who are now looked upon as being successful 
traffic men had to go through a certain period of 
study or training. Just as a straight line is the 
shortest distance from one given point to another, 
so also is specialized knowledge, gained through 
study, the quickest and most direct route to 
success. 

Organization heads have become fully con¬ 
vinced that well-developed traffic departments are 
essential. Realizing that a tremendous amount 
of money is spent annually for freight charges, the 
alert business man knows that its expenditure 
must be administered by experts, in order to pre¬ 
vent unnecessary losses through the mediums of 
freight overcharges, carelessness in billing, and 
inefficiency in handling shipments. Large sums 
2 


are also lost through ignorance of, and careless¬ 
ness in, routing and rating shipments. Business 
organizations are willing to pay efficient traffic 
managers salaries commensurate with their ability. 

The job of the traffic manager has consequently 
developed into a profession. His responsibilities 
cause him to be considered one of the keystone 
men of the organization. His advice and counsel, 
because of his specialized knowledge, are sought 
in choosing the location of plants, in production, 
and in distribution. Wrong judgment in any of 
these matters, from a transportation standpoint, 
might cause big losses to the company which he 
represents. The conception of many young men 
that the traffic man’s job consists in auditing 
freight bills, filing claims, and studying tariffs, is 
only a fractional conception. Let’s see how big 
is the field for traffic management. 


Possibilities in Transportation 


NFORTUNATELY, the average American 



^ business man, before the great war awak¬ 
ened him, was very apt to consider his own coun¬ 
try as the “whole world,” so far as foreign trade 
possibilities were concerned. He was content to 
let foreign manufacturers—thoroughgoing Ger¬ 
mans, suave Frenchmen, and astute Britishers— 
skim the cream off the foreign markets and take 
most of the milk too. Since the war, however, 
this attitude has changed. The still cautious but 
more promising attitude of “watchful waiting” 
has taken its place. This bids fair to ripen into 
a really vital “let’s go” policy, as soon as the 
foreign credit situation begins to recover. 


This, of course, has an important bearing oh 
our near-future transportation possibilities and 
opportunities, and on the field of the traffic man¬ 
ager. It will mean, so far as America is con¬ 
cerned, a hitherto unheard of expansion of that 
field. Instead of the few paltry hundred-thou- 
sand-dollars’-worth of shoes, for instance, that we 
now export yearly to Great Britain, several mil¬ 
lion dollars’ worth of that useful commodity will 
be sent to her annually. Other exported com¬ 
modities will enjoy a similar increase in foreign 
consumption. But the greater possibilities that 
await us in the markets of the Orient, of South 
America, of Eastern and Western Europe, will 
largely be conditioned by the energy and enter¬ 
prise of our advertising and selling methods. 
Then, and only then, will the science of transpor¬ 
tation come into its own, and traffic management 
will become the profession of the immediate 
future. 

Let us turn, for a moment, from this larger 
vision of the field of the traffic manager to a 
“close-up” of our own transportation problems. 

The four principal factors of ocean transpor¬ 
tation are: ships, harbors, docking facilities, and 
the wide ocean itself. But the factors of our in¬ 
terstate and intrastate transportation are many 
and complex. These have arisen largely because 
of the miracle-like growth of our railway systems, 
as the chief means of transportation. Ninety 
years ago, or in 1831, the year in which the first 
train was run in New York state, there were 72 
miles of railroads in the United States. In 1918 
there were 253,529 miles—enough railway to 
4 


reach around the earth ten times—which repre¬ 
sents an average increase during those 90 years 
of 2,822 miles a year. In other words, for every 
100 square miles of area in the United States 
there are 8.53 miles of railway. And roads are 
still being built and extended into the untouched 
regions of our country. 

To handle the 408 billions of tons of freight 
which were transported in the United States in 
1918, more than 2,000,000 freight cars were 
needed, and something like 50,000 freight loco¬ 
motives. The territories reached by the railroads 
constitute a large portion, but by no means all 
of the field of the traffic manager. 

It is, after all, the effectiveness—the speed and 
economy—of our domestic system of carriers that 
will make a larger foreign trade possible. It 
still costs as much to send a ton of merchandise 
1,000 miles by land as it costs to ship the same 
ton 10,000 miles by sea. 

Assembling Materials and Distributing 
Products 

F IRST, raw material—coal from the Pennsyl¬ 
vania mines, for instance, oil from the wells 
of Texas, iron from the Lake Superior region, 
lumber from the forests of Oregon, wheat from 
the fields of Kansas—must be carried by rail or 
water route to the great manufacturing and fabri¬ 
cating centers. These are situated in New Eng¬ 
land, in the middle West, or along the Atlantic 
Seaboard. After the raw material has been made 
up into various commodities, they are shipped to 
the different marketing centers, and are distrib- 
5 


uted to and stored by jobbers and wholesalers in 
foreign or domestic markets. Next, they may be 
sent by rail, truck, or steamer to innumerable re¬ 
tailers and then delivered by truck, express, mes¬ 
senger, or parcel post to the ultimate consumer. 

As a simple concrete illustration of the extent 
to which we are dependent upon transportation 
for practically every manufactured thing we have, 
take the materials which enter into the make-up 
of a pair of shiny leather shoes and follow them 
back to their sources. Where did these materials 
come from and how were they brought all into 
one place, to be assembled mechanically into that 
pair of soft-topped, patent-leather-vamp shoes 
which you bought the other day? The resources, 
not only of various parts of our own country, but 
of some of the uttermost parts of the earth were 
called upon to furnish those materials. 

The hide for the leather in the vamp of the 
shoes was brought all the way from the Steppes 
of Russia, where it was grown on the back of a 
horse. The soft tops are made from goat skin, 
shipped up from South America, tanned in Phila¬ 
delphia with gambier brought by ship from the 
West Indies. Wood oil from the Michigan for¬ 
ests rendered the tops soft and pliable. To ob¬ 
tain that permanent brilliance which characterizes 
patent leather, a composition was used that was 
made of lampblack from New York, turpentine 
from North Carolina, linseed oil from Ohio, 
dammar from New Zealand, asphalt from South 
America, benzoin from Sumatra in the South 
Seas, benzine from Pennsylvania, amber from 
6 


the Baltic Sea, sandarac from Africa, mastic from 
Greece, and Cuban lac. 

From Texas the heavy sole leather was brought 
up to Kentucky, and tanned with oak bark from 
Tennessee. Scotland furnished the linen thread 
which binds together the sole and the welt, the 
welt and insole and upper. But, first, the thread 
had to be strengthened with resin extracted and 
brought up from the pine trees of Carolina or 
Georgia. The rubber trees in Brazil yielded the 
base for the cement which holds the thread chan¬ 
nel around the edge of the soles. The leather for 
the box toe was hardened by shellac from Siam; 
while the leather in the tongue is Kangaroo hide 
from Australia. The polish on the soles was 
made of bayberry tallow from the West Indies, 
mixed with honey and beeswax from Florida, and 
turpentine from North Carolina. From Persia 
came the tragacanth used to clean the top and the 
tongue. 

The twill for the shoe-lining was made from 
cotton grown in Mississippi, taken thence to 
Massachusetts to be woven, then transported to 
Philadelphia to be stiffened with a mixture made 
from Kansas wheat flour. Sea Island cotton sup¬ 
plied the thread for top stitching. 

The wool in the felt heel pads came from Ohio 
sheep. It was felted in a New York town, dis¬ 
tributed in Boston, and glued to place with gum 
arabic from Egypt. The shoe lace is made from 
cotton, grown in Louisiana, woven in Massachu¬ 
setts, and colored with logwood from Yucatan, 
mixed with other chemicals. 

7 


The iron in the nails came from the ore mines 
of Sweden. In Connecticut, the lacing hooks were 
manufactured. They are made of a combination 
of zinc from the mines of Joplin and copper from 
the Lake Superior country. Silk from China pro¬ 
vides the tag, made in New Jersey, which bears 
the name of the maker of the shoes. 

Thus in the manufacture of a pair of high 
grade dress shoes, transportation of materials 
was necessary between points in some fifteen or 
sixteen states of the Union; and in addition, the 
transportation systems of South American coun¬ 
tries, the East Indies, Africa, Great Britain, Siam, 
Persia, Egypt, Sweden, and China were called 
into service. 

Some of the transportation of these materials 
was by means of railroads; some by steamships 
and steamboats—coastwise, transoceanic, and 
inland; and sometimes by motor trucks. In some 
cases, the means utilized were camels in the cara¬ 
vans of the far east, horses, mules, oxen, the 
backs of sweating porters—white men, yellow 
men, black men—slow moving barges on lazy 
tropical waters, sailboats, rowboats. All these 
various methods of transportation assisted in the 
bringing together of the materials which went 
to make up your pair of shoes. 

What is true regarding the materials in a pair 
of shoes is true, in a greater or less degree, of 
practically every one of the many manufactured 
articles which we use continually. From this we 
may see the importance of transportation—the 
field of the traffic manager. 

8 


Transportation the Sustainer of Civilization 

' | ^HE transportation of these vast quantities of 
merchandise, from raw product to consumer, 
has meanwhile given employment to thousands 
of other related activities—manufacturing and 
subsidiary commercial enterprises, banks, insur¬ 
ance, trust companies, etc. And an analysis of 
these various secondary factors takes us into the 
economics of transportation. Our transporta¬ 
tion system (speaking nationally), in spite of its 
many imperfections, is one of the smoothest run¬ 
ning and most generally effective examples of 
modern social organization. Its normal func¬ 
tioning is as vitally necessary to the well-being of 
our social, political, and economic body as is the 
healthy functioning of the heart to the life of the 
human body. 

If, for any reason, the power of the minds 
that direct the continuous flow of merchandise 
over carrier routes by land or sea were suddenly 
withdrawn without replacement, this wonderfully 
organized and complex civilization of ours would 
soon become chaos. Witness the present plight 
of Russia—a helpless social derelict, a prey to 
moral as well as physical disease, famine, and 
death. Her condition is due largely to the com¬ 
plete breakdown of her entire transportation 
system. 

What of our own country—of America? We 
see our principal carriers, the railroads, as a re¬ 
sult of the war and of uneconomic administration, 
still staggering under a stupendous load of debt. 
We see our merchant marine dwindling almost to 
a cipher, in spite of war-time promises. 


Traffic management—scientific, efficient traffic 
management—alone can relieve our difficulties. 
Let finance, manufacture, merchandising, and the 
public all do their part; but unless the proper 
kind of traffic management becomes more nearly 
universal than it is today, the high cost of living, 
strikes, lockouts and corruption—social, political, 
and individual—will continue. 

Traffic Management and Business Values 

r T v RAFFIC management is only incidentally 
-*■ concerned with the railroad system itself— 
with its engineering, accounting, financing, and 
promotion problems. It is concerned chiefly with 
the transportation service 9 and its relationships 
to business, to government, and to the public. 

Its relation to business is particularly intimate 
and complex. The effectiveness of the carrier ser¬ 
vice has a direct bearing, for example, on the 
cost as well as on the quantity of commodities 
produced. 

Production is the process whereby the raw 
materials of the earth are made fit for human 
use—for consumption. 

Transportation is the link that binds the pro¬ 
ducer to the consumer. Its chief function is to 
increase what the economists call the “place util¬ 
ity’’ or “availability” of commodities. This 
invariably decreases their cost. We produce 
things because we want them. Any increase in 
availability and decrease in the cost of com¬ 
modities increases our wants, and consequently 
greatly accelerates production; hence the power- 
10 


ful influence of modern transportation on the 
quantity as well as quality of things produced. 

The relation of transportation to the exchange 
of wealth is also an important one. Economists, 
let us remember, consider wealth not as money, 
but as the potential buying power existing in com¬ 
modities. Stock exchanges, banks, insurance and 
trust companies are all agencies for the exchange 
of wealth between producer and consumer. The 
least dispensable of these agencies is transpor¬ 
tation. 

Transportation has an important bearing on 
the distribution of wealth as well as on its ex¬ 
change. According to certain well-established 
economic laws, it is the determining factor in 
the value or purchasing power of land, of wages, 
and of capital. One of the most important, far- 
reaching effects of the improved transportation 
service of the last century has been the lowering 
of the rates of interest on capital. In turn, lower 
interest rates have greatly increased the amount 
and availability of capital, considered in its 
broader sense as property. 

Transportation and the Government 

T HE VITAL relationship that transportation 
bears to government is now firmly estab¬ 
lished by law. The Supreme Court of the United 
States holds that, “The business of a public car¬ 
rier is of a public nature, and in performing it, 
the carrier is also performing, to a certain extent, 
a function of government, which requires him to 
perform the service upon equal terms to all.” 
This means, among other things, that in the mat- 
11 


ter of shipments carriers must not differentiate 
between shippers of goods over their lines, by 
giving the preference of early delivery to those 
shippers who give their particular road the most 
business. 

The keystone of the arch of all transportation 
systems, the world over, is the principle that, 
transportation is a function of government. Be¬ 
cause of this principle, franchises give to private 
as well as to public corporations the right of way 
and the power to purchase property along carrier 
routes. This principle is also the reason, as well 
as the justification, for the ownership, operation, 
and control of public carrier systems by some 
governments. Pre-war Germany is the historic 
instance of successful government control. It is 
not our purpose here to go into the question of 
government ownership, with its advantages or 
disadvantages; but government regulation rather 
than control has characterized the evolution of 
our own transportation system, in times of 
“normalcy” at least. 

The prosperity of the country and of the rail¬ 
roads is closely interwoven; and industries are 
so related that prosperity for one helps to pro¬ 
duce it for the other. Both passenger and freight 
rates undoubtedly affect prosperity. The raw 
materials for factories and mills, the innumerable 
articles necessary to turn out a perfect finished 
product, and the products themselves all reflect 
freight rates. When rates are lowered, such a 
change is noticeable, especially in low grade com¬ 
modities, where the cost of transportation is a 
great factor in the selling price of a given article. 

12 


It must never be forgotten that, while we speak 
of the relation of railways to business, to the 
government, and to the public, there is really 
only one relationship and that is to our entire 
population —the public. The railroad must serve 
all without favoritism. 

During and immediately after the era of our 
“Empire Builders”—the railroad and steamship 
pioneers—our transportation system was seriously 
hampered by many evils. The rapid growth of 
unfair competition, combinations, trusts, and 
other monopolies soon made some kind of gov¬ 
ernment regulation imperative. While socialists 
and “muck-rakers” raised the slogan of “govern¬ 
ment ownership,” traffic commissions—federal 
and state—came into being. Stringent laws, rul¬ 
ings, and regulations were the order of the day. 
As a result, certain laws, which were necessary at 
the time they were passed, are now more of a 
hindrance than a help to the healthy growth and 
functioning of our transportation service. In the 
process of time, however, both legislators and 
laws will doubtless adjust themselves to really 
fundamental traffic requirements. 

The Traffic Manager Himself 

L ET US now consider the traffic manager him- 
f self—his duties, responsibilities, and oppor¬ 
tunities for growth and service. 

As transportation systems and service became 
larger and more complex, the traffic manager soon 
became an indispensable factor in the operation 
of every railroad, steamship line, and large manu¬ 
facturing plant. While his duties and responsi- 
13 


bility to society, to business, and to the government 
cannot be overestimated, his duties to his organ¬ 
ization are also definite and vital. Although they 
may differ in certain minor respects in different 
types of traffic organization, they are funda¬ 
mentally the same. This holds true, whether he 
is connected with a railroad, an industry, a ship¬ 
ping company, a government service, or a trade 
association. 

Some of these duties, which a traffic manager 
must perform in the regular administration of 
his work, may be enumerated as follows: 

The proper interpretation of tariffs, rules, and 
regulations. 

The preparation, filing, and prosecution of 
claims for loss, damage, and overcharge. 

The understanding of general railway practice 
and procedure. 

And especially must he be able to cooperate 
with other departments—with the sales depart¬ 
ment, by securing rate adjustments; and with the 
purchasing department, by determining from what 
point, or points, it is most profitable to ship. 

In view of these responsibilities, what does the 
traffic man owe to himself as a man? This; to 
develop and organize himself—physically, men¬ 
tally, spiritually—so that he may be capable of 
rendering the utmost service. Insofar as he does 
this, will he be able to measure up to the full size 
of his job. And that job, if he measures up to it, 
is one of the biggest in industry. 

If he hasn’t had the opportunities to obtain 
the broad culture that travel and education give, 
let him do the next best thing—let him read. 

14 


Books on travel, economics, history, and indus¬ 
trial psychology are invaluable adjuncts to a well- 
rounded traffic education. 

The rules for character-development and per¬ 
sonal growth are simple. We all know them. 
But their practice is a matter of individual train¬ 
ing and self-discipline. Their mastery will make 
the successful manager the successful man. 


15 

























































































































I 

i 


















i 





















































































































































































































































































































